Is The iPad Cannibalizing PC Sales?

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A report from All Things Digital says that the iPad is cannibalizing PC sales, and that it's not just happening in the netbook market; it may be the entire PC industry.

In a note to clients, UBS analyst Maynard Um said, ‚ÄúSales 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‚Äôs. However, consumers who purchase iPads may be more willing to delay purchases and upgrades of existing PC‚Äôs.‚Äù

Um notes that because few iPad rivals are available right now, that this trend could continue far into 2011. Um says that the iPad will probably maintain a strtong momentum and that iPad sales will probably hit 28 million in 2011, which he says may still be a "conservative" estimate.

[via All Things D]

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