Analyst: iPad 2 Cutting into PC Sales

Posted 04/05/2011 at 8:09am | by Paul Lilly

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Apple set out to kickstart and then rule the tablet market with it's iPad, and now the iPad 2. Mission accomplished, at least until sexier Android tablets chip away at Apple's mobile market share. But what about PCs? It would be silly to think that slates will replace traditional computers, but according to one analyst, Apple's iPad devices have significantly cut into PC growth.

As noted by Apple Insider, PC sales are still growing, just not as fast as expected, according to Deutsche Bank analyst Chris Whitmore. As Whitmore sees it, PC unit growth for 2011 will likely hit 4 percent year-over-year, down from his previous prediction of 9 percent. At the same time, Whitmore ramped up his tablet sales forecast from 40 million to 45 million, with 35 million attributed to Apple.

"We remain skeptical whether the likes of (HP), Dell, Motorola, Samsung, and RIM etc., can close the gap on the iPad 2," Whitmore wrote. "Specifically, iPad challengers must either undercut on price (negative margin implications) and/or offer a superior user experience."

In 2012, Whitmore again downgrades his PC growth rate prediction, though not by much. He now sees PC sales growing 7 percent year-over-year in 2012, down from 8 percent.