Goldman: Apple iPad will cannibalize the market for, and makers of, netbooks and laptops

invisibleSHIELD case for iPadGoldman Sachs discusses the stock market implications of Apple’s revolutionary iPad in a note to clients, reports The Financial Times’ Joseph Cotterill.

Goldman’s take on iPad:
1. Consumption – iPad focused squarely on information consumption versus information production
2. Content – iPad relies on tight integration with content sources
3. Connected – Multiple options ensure the iPad is connected to the internet
4. Constant operation – iPad is an “instant on” device with all-day battery life
5. Commerce – Apple’s ecosystem ensures that users are always “ready to buy”

Goldman “reckons that tablet thingies like it will eventually cannibalise the market for (and makers of) netbooks and laptops,” Cotterill reports.

Full article here.

22 Comments

  1. I got my iPad more than a year ago, and it came with an integrated keyboard. It’s a MacBook.

    No interest in the iPad so far. Played with them at the Apple Store, they’re a really big iPod Touch.

    The first generation of an Apple product always leaves something out. Will take another look when they upgrade.

  2. I have 2 iPads now. This isn’t a war with netbooks. That war ended several weeks ago when people got their hands on the iPads. Yes, laptops have their place and so do anchored desk computers. But, the iPad is the mobile device of choice now! 80 to 90 percent of the netbook sales will be lost in every location that the iPad sells in.

  3. @max

    You don’t see the beauty of the iPad until you are sitting on your couch with is. They are more than an iPod touch.

    I love mine, but you are right about waiting for the upgrade if you don’t have to have it now.

  4. @max:

    Not the same experience at all. I take the iPad to restaurants & coffee shops & the park to read books. I also lay in bed & lay on the couch while holding my iPad. I’m not going to do any of that with my MacBook. I love my iPad, and I’m extremely glad that I didn’t wait for the next generation before buying one.

  5. @Asterix

    True, it’s not – but up until the advent of the iPad, many people would have considered netbooks for the tasks that iPad excels at. iPad changes the game, and thus “cannabalizes” sales of netbooks which have now been shown to be, for many, a non-optimal solution to their needs.

  6. @max

    Every generation of a product leaves something out. There’s always “something better on the horizon.” I can tell you that my iPad is what I use 95% of the time at home. I don’t bring my laptop home from the office anymore. Yes, it is a big iPod Touch, but at the same time, it is much more than that.

    Whenever you get one, now or later, you will love it.

  7. My thoughts about the iPad cannibalizing laptops are very similar to my thoughts about laptops killing the desktop computer 5 years ago. Laptops had become so powerful, I wondered why anyone would sacrifice the portability, and use a desktop. Yet desktops are still being sold in large, granted, declining numbers. But they aren’t dead yet.

    Laptops aren’t going anywhere just yet. But as the iPad matures, more casual users will gravitate towards it as an all-purpose machine.

    I think Mr. Jobs’ analogy of the Desktop as a truck and the iPad as a car is right on target. He gets it. That is why Apple hits it out of the park with almost every swing.

  8. “1. Consumption – iPad focused squarely on information consumption versus information production”

    This is by far the best comment to describe the difference between an iPad an a laptop. I’ve been asked to describe to friends and clients why the iPad is worth getting and this one sentence does it so much better then I ever have.

    I hope they don’t mind me borrowing the comment, “information consumption versus information production”. Perfect!

  9. @Vatdoro

    Right on.

    There is always something better coming out tomorrow. The question is if the price you pay is worth the short term benefits between now and the next thing.

    The iPad has been a life changer for me. Most days, when I don’t need to do any heavy computing like Photoshop or Xcode, I just head out with my iPad. It’s a huge convenience and the Maps feature alone has already saved my butt when I was lost in Taiwan a couple of times.

  10. … “introductory”. Right now, the iPad is pretty much limited to surfing, reading, light games and light typing. Pretty much what the iPhone was limited to a few months ago. Now you can get a version of iMovie for the iPhone. Not even a full version of that “intro” product, but better than anything like it for a smart phone. Similar products will be showing up soon from other sources, but will not GarageBand be appearing soon? And, perhaps iWeb? “Lite” versions, no argument, but versions! And will these not migrate to the iPad? That’s content CREATION, guys.
    But … I don’t believe the iPad will seriously chew into the market for a portable computer … not anytime soon. That “lite” is too limiting … the same reason the laptops are expanding without doing serious harm to the desktop market.

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