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iPad not a threat to notebooks says report

by Sarah Griffiths on 4 October 2010, 12:11

Tags: NPD Market Research

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Fan boy nature confirmed?

Despite rumours to the contrary, the iPad is not damaging the PC market, according to a new report.

Warnings of Apple's tablet cannibalising the PC market have been ‘proved' wrong as iPad owners do not have the same buying and ownership patterns as typical computer customers, according to the NPD Group.

According to the report, just 13 percent of iPad owners surveyed chose the tablet instead of a PC, while almost a quarter bought one to replace an e-reader.

Perhaps unsurprisingly it also found most iPad owners who snapped up the tablet within 2 months of launch are ‘significantly' more likely to already own Apple products and newer offerings like e-readers and smartphones.

Possibly confirming Apple fan boy tendencies, the report said iPad owners are ‘much more likely' to own Apple computers, and half of people who snapped up an iPad in the first two months of launch owned a Mac desktop or notebook. Over a third of iPad owners also carry an iPhone.

"Early adopters, like iPad owners, follow a traditional pattern of consumer behaviour; they purchase products because they want them, not because they need them," said Stephen Baker, VP industry analysis at NPD.

"However, as Apple increases iPad distribution and consumer interest peaks, the profile of an iPad owner is much more likely to mirror the overall tech population. When that does happen other tech products with similar usage profiles as the iPad, such as notebooks, netbooks, and e-readers will come under increased pressure from the iPad. Until then, however, most iPad sales are likely to be incremental additional technology devices in the home, rather than a one-for-one replacement of a planned purchase."

The firm also found the traditional notebook has maintained strong demand among students in Canada despite the lure of smaller netbooks and tablets.

In fact, NYP said netbook sales have risen by more than 20 percent from the 2009 back-to-school season, while netbook sales have slumped by 25 percent. It was surprised to note a surge in demand for desktop computers with sales nearly a third higher than last year.

Darrel Ryce, director of IT & entertainment at NPD, said: "Netbooks and Tablets definitely have the "cool factor" for students; however, they are clearly gravitating to the faster processing speeds, larger storage space and the more dynamic options of the traditional Notebook and desktop computers for their school needs."

He also said 2010 back-to-school sales are stronger across the board than last year's demonstrating a boost in consumer confidence following the global financial crisis. He also predicted healthy Christmas sales.

"In the past two years, Notebook sales during the week leading up to Christmas were 50 - 75 per cent higher than the peak back-to-school week. While we can't predict whether or not it will be a white Christmas, I can say that Notebooks will definitely be in the forecast for consumers this holiday season."