PC Shipment Forecasts Get Cut Thanks to Popularity of iPad

Forecasts for computer shipments in 2010 and 2011 do not look good and according to a recent Reuters (News - Alert) report, research firm Gartner has cut its forecasts due to weaker demand. The firm noted that a greater number of customers are choosing the tablet computer instead of a PC, significantly impacting demand.

According to Gartner (News - Alert), PC shipments are still expected to rise by 14.3 percent to 352 million units, year-on-year. In 2011, shipments are expected to rise by 15.9 percent. Previous predictions by the firm had growth in 2010 hitting 17.9 percent and 18.1 percent in 2011.

Gartner research director, Ranjit Atwal, said in a statement that the results of these forecasts reflect the marked reductions in expected near-term unit growth based on expectations of weaker consumer demand.

Atwal noted that this weaker demand is due to the growing user interest in media tablets such as the iPad. In fact, these tablets are expected to displace roughly 10 percent of PC units by 2014.

Gartner isn’t the only research firm that has identified this trend. A recent Engadget report shows that the Eee PC vendor ASUS has reported fewer sales in the second quarter, relative to the first and downgraded expectations for the third quarter, which is usually the peak season.

ASUS CEO Jerry Shen has named Apple’s (News - Alert) iPad as an invader that is “crowding out” the demand on netbooks and PCs. Shen reaffirmed, however, that he continues to be firmly committed to the small and affordable laptop market.

Looking to the future, a full range of Eee Pads will be ready to hit the battlefield, challenging the dominance of the iPad. Will ASUS be up to the challenge, especially with the Android (News - Alert) tablet set to launch next month?

It is true that netbooks are not going anywhere for now, yet the latest industry numbers suggest that they may just have to be happy with a smaller share of the market, giving up that spotlight to the iPad or the variety of other touch-friendly pads hitting the market.

The one question that may remain is how long netbooks and other PCs can maintain market share in the presence of the growing popularity of tablet computers. As the corporate environment continues to be targeted by tablets makers – Apple especially – the days of the netbook could be numbered.