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Tablets are killing the PC business, so what?

September 9, 2010

An analyst at UBS wrote this in a report yesterday.

“Sales
of traditional notebooks appear to be feeling pressure from the iPad,
causing a scramble by vendors to launch iPad-like tablets… We believe
that a majority of this impact is occurring on the lower end of PC sales
as the iPad is priced close enough to this range that it becomes
attractive to consumers looking to make purchases within this segment.
We are not sold that the iPad is purely cannibalizing PC sales, as the
functionality of the iPad can not yet fully match the functionality of
notebook PC’s. However, consumers who purchase iPads may be more willing
to delay purchases and upgrades of existing PC’s.”

We all know the iPad is selling like hot cakes and that a host of rival tablets will be launched this holiday- tablets are bigger than big- they are re-defining what computing means.

In a sense, it’s even blindsided Apple, it’s pretty certain they weren’t expected the iPad to be such a runaway success and obviously don’t want it to hurt their Mac and laptop business.

The reality could simply be that laptops and PCs are simply over-engineered for most consumers. They want the basics, some speed, but most of all, they want it to be easy and fun- the iPad is all that and more.

The installed base of PCs is huge and it’s the primary medium through which most of us navigate the internet, but if this base erodes, we are looking at a fundamental transformation of most of the experiences we take for granted.

What if applications dominate websites?

What if iAds become the norm for interactive advertising?

What if touch becomes the navigational norm?

The implications of this are huge. 

Posted by Ed Cotton

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