iPad Craze Cuts Into Laptop Sales, Cripples Netbook Market

The market for laptop computers has been gradually declining in recent months as consumers have begun gravitating toward the iPad and other tablet devices, according to multiple reports.

Researchers with the NDP Group recently estimated that laptop sales in the U.S. increased by 12.3 percent since the beginning of 2010, far below the 30 percent growth rate for the first eight months of last year, the Wall Street Journal reports. During that time, the average price of laptops dropped by 6 percent. Furthermore, the portable PC market fell by 1 percent in July and August of 2010, the peak of typical computer shopping season.

"Laptops are not the blazing growth category they were five years ago, but they're not going away either," Staples (News - Alert) Chief Executive Ronald Sargent told the news source. "For business use, you are still going to need a laptop."

Although the economy may be partially responsible for the dip in sales, the numbers suggest that the introduction of the iPad may be more to blame. A recent Forrester Research (News - Alert) report found that 14 percent of online customers plan on buying an iPad or competing tablet device in the coming year, compared to only 13 percent who said they plan to purchase a laptop, according to PC World.

In a more startling Morgan Stanley/Alplawise study, nearly 45 percent of consumers who said they plan on buying an iPad during the next 12 months told researchers that they will use the device as a substitute for a laptop.

While analysts and company executives continue to debate whether the iPad will permanently cripple the laptop market, it is clear that the tablet device has virtually eliminated the need for netbooks, which were big sellers only one year ago. In fact, netbook sales are expected to plummet by about 12 percent in 2010 after nearly doubling in the previous year, according to the Consumer Electronics Association (News - Alert).

Although the iPad is on pace to become the fastest-selling device ever, Apple is soon to face some stiff competition. Nearly every mobile device provider on the planet -- including Dell, Toshiba (News - Alert), Samsung and RIM -- are expected to introduce a tablet device in the coming months.

Beecher Tuttle is a Web Editor for TMCnet. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Erin Monda