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.


  1. “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!

  2. @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.

  3. … “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.

  4. If marking up documents for work (annotating PDF articles to provide feedback to authors) counts as consumption then I use my iPad mostly for consumption.

    If making killer sales presentations counts as consumption then marketers use iPad mostly for consumption.

    The problem with the “consumption” line is it suggests iPad is mostly for leisure activities. Sure, you can’t type on it as fast as a laptop but there are a whole lot of “productive” activities that don’t require much typing.

    The other main problem with “production” on iPad is inability to easily save and manage files that are created and edited on it. But the rapidly evolving iDisk apps, mobile me and a certain server farm are going to solve that problem imminently.

  5. I was never in the market for a netbook. But I bought iPad right away and it changed my lifestyle immediately. I will always buy the next top of the line iPad and gift or sell the one I was using until then. I don’t understand the idea of waiting for the next version when I could be dead by then without the benefit of the life changing experience with the current model now. There is a learning curve one must go through with an iPad. Why one would wait to get that experience and enjoy today’s benefits of ownership now for what will always be a future better version is an inexplicable mentality to me.    

  6. I didn’t think I needed one. I’ have a MacPro 8 core, two MacBook Pros, and an iPod Touch. My wife got me one for my birthday and I’ve grown into it. It started with a couple of “eye candy” apps (The Elements, The Observatory Clock, Sun Clock), then on to more pragmatic programs like, Beat the Traffic, LightTrac (I’m a photographer so this comes in handy) and news consolidation apps.

    I’m not sure when it became an unconscious part of my life….. I’m reading classic books (free) that are on my bookshelf but I never had time to read. I’m finishing Don Quixote because my iPad is always with me and I can ready a chapter when I have a few minutes to spare. I purchased my first game EVER, RealRacing HD and love it. I had only about thirty Apps on my iPod Touch. I have almost 200 on my iPad

    I took my iPad on a photo shoot and downloaded about 20GB of images as a backup. Soon I may not have to carry around my MacBooks for all of my photo shoots.

    My wife used mine for a week and got one too. Now her entire office has one.

  7. For me the iPad won’t kill the need Ihave for my Macbook.

    I was looking to get a kindle (as a book reader) when I heard about the ipad, so for me it’s a great ebook reader that does so much more. My Macbook I use primarily for writing and work (excel, Photoshop, DW) those things I doubt will be too good on the iPad just like reading an ebook isn’t so great on a PC or macbook.

    I guess if someone just is checking email and web surfing and looking at photos then the iPad would probably be a viable substitute for a macbook.

    I love technology and right now Apple has an edge (in my opinion)

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