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Are laptops losing their charm to frenzy tablets?
By siliconindia
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Thursday, 07 October 2010, 00:43 IST |
2 Comments
Bangalore: Laptop computers are losing its charm nowadays. Not only because of the sluggish economy, but some shoppers are spending their money on Apple gadgets.iPad tablets are the latest boom in the gadget world and are fueling in sales tremendously.
Analysts expect Apple to sell 11 million to 12 million iPads this year, more than double many initial estimates, and reach 20 million next year. Samsung Electronics, Dell and other companies are racing to introduce their own tablets.
The tablet frenzy contrasts with some indicators for laptops. NPD Group estimates that laptop unit sales in U.S. retail channels rose 12.3 percent in the first eight months of the year well below 30 percent growth of the year-earlier-period and were down 1 percent in July and August, the peak of the important back-to-school shopping season.
Big computer chip suppliers,Intel and Advanced Micro Devices, have recently warned of weak consumer demand and lowered their revenue forecasts for the third quarter.
Market researcher Gartner has trimmed its global forecasts for laptop shipments, but still expects a 26 percent increase to 214 million units this year. The firm says the average selling price of portable PCs has fallen 6 percent to $668 from $710 a year ago.
"Laptops are not the blazing growth category they were five years ago, but they're not going away either," Staples Inc. Chief Executive Ronald Sargent said in an interview. "For business use, you are still going to need a laptop."
IPad sales remain just a fraction of total portable computer sales, but industry executives expect the competition for consumer dollars to become more important next year, as more tablet options emerge.
The biggest impact so far appears to be on "netbook" computers, which run the same software as conventional laptops but have smaller displays and typically cost less than $400. Asustek Computer Inc. helped establish the category in 2007, but most major manufacturers offer models now.
