The iPad has had tremendous success, just like everyone thought it would, and the mobile device is already a threat for the netbook business, but also to the laptop business, PC and Mac included.
Yes, you heard me right, folks, it looks like the iPad is eating through its own also. According to a recent report not only PC sales have been affected by the introduction of the tablet but Mac sales too. Going back in time we’ll replay that last Apple quarterly earnings report in which Apple’s officials were touting how iPad Mac cannibalization is not a serious threat. And if that happens, then lots of PCs will also die in the process. Even Steve Ballmer is aware of that.
But is Apple willing to lose a fair share of MacBook (and other Mac models) customers? The first response you’ll be willing to give me is probably no, since the most expensive iPad is cheaper than the cheapest MacBook notebook. I’d say that’s an accurate argument but you are forgetting that the iPad, on its own, is a device you don’t need. Add some apps, eBooks, videos and music and the tablet comes to life. But guess what, all that content, coming from Apple, is not free of charge, and, over time, Apple will make a lot more money on you than what you initially paid for the tablet.
We’re considering MacBooks here for the sake of the comparison as the obvious iPad alternative since they’re both mobile devices. But today’s report says that the iPad is cannibalizing on Mac sales, meaning Apple desktops too.
The iPad vs Mac report comes from Morgan Stanley’s Katy Huberty and she is saying that PC sales dropped to 3% year over year for July compared to 6% in June and 8% in May and the iPad can be blamed for that. Sales for business went up 39% year over year, which kept PC at a steady 11%.
Looking at Mac sales for July she wrote that sales are up 14% year over year, better than June at 11% but down when compared with the previous three-month average, which is at 25%.
So that’s probably why Apple is thinking a 7-inch tablet is a good idea, and as a smaller netbook-like computer could do even more damage. Have you purchased an iPad instead of a Mac or PC?
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Video hosting site Vimeo is the latest to join the HTML5 craze, launching a new web player that can automatically detect the hardware of the end user and play videos either in Adobe Flash or HTML5 format. The service will take account hardware requirements, browser, and the connection speed. HTML5's advantage is that it will make Vimeo's content more accessible to mobile devices, such as those that don't support Adobe's Flash plug-in, such as Apple's iPhone and iPad.
