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“Best Buy, which reported a 61% jump in second quarter profit Tuesday despite flat sales at stores open at least 14 months, said it will showcase devices such as Apple Inc.’s iPad tablet… On Tuesday, Best Buy said it will expand iPad distribution to all of its 1,093 U.S. stores Sept. 26,” Bustillo reports. “Best Buy’s strong results for the three months ended Aug. 28 were due to tight expense controls, increased sales of cellphones and services such as connecting televisions with home networks, and a stock repurchase program that reduced total shares outstanding.The earnings also underscored the trends buffeting consumer electronics retailers heading into Christmas. Best Buy said smartphone sales continued to rise compared with a year ago, as did portable computer totals, buoyed by the iPad.”
Bustillo reports that Best Buy Chief Executive Brian Dunn said in an interview that “internal estimates showed that the iPad had cannibalized sales from laptop PCs by as much as 50%.”
MacDailyNews Note: And it’s not MacBooks, MacBook Airs, or MacBook Pros that are being cannibalized (see related articles below).
Full article here.
MacDailyNews Take: The bloodbath continues unabated. Ain’t it pretty? Always remember, Mikey, Balmy, etcetera: “It’s amazing how fast the world can go from bad to total shit storm.” Swing!
<sniff> I’m starting to get all verklempt for the poor PeeCee makers. Yeah, that’s it…
Uh, Best Buy is certainly expanding into mobile computing devices, but it’s also expanding it’s TV sales areas. Been in a Best Buy lately? The TV section takes up 25% of the store. HDTVs are selling like hotcakes now. If anything, they’ll be cutting back in appliances and car stereos.
Anyone remember those PC ads that poked fun at Apple’s Macbooks. What can I get for $1,000, certainly not a Mac! While Microsoft zigged, Apple zagged. Those commercials look kind of odd now given that you can get an iPad for $500. I just got one today at Best Buy for a gift. I didn’t even have to talk to anyone, they were on display right in front of the entrance. It was like buying a CD (remember those?). I was in and out in 5 minutes. I think supplies should not be an issue for a while.
If people are not buying PCs then how are they syncing and updating there iPad. The iPad is not a stand along device, you need another device (PC/Mac) to maintain it and software updates. I can only guess people are going to be keeping there older PCs for a lot longer these days.
Hahha ha haaaaaa haaa haaaaaaa ha haaaaa haaaaaa
. . . (Cough) (Cough) haaa haa ha haaaaa ha (gasp) haaaa ha haaaa
“internal estimates showed that the iPad had cannibalized sales from laptop PCs by as much as 50%.”
Wow, that’s a major impact at the largest PC retailer in the country.
The proof of the pudding is in the eating, so showcasing the iPad makes sense if the above statement is true.
As for TVs, the truth is, tv sales are weak, that’s why the tv biz is already talking about the next big thing, 3dtv, to stimulate interest. I’m waiting for Black Friday to see what I can pick up.
Longview, TX’s Best Buy just got the Apple store-within-a-store treatment recently.
Did you mean Schwing?
Buy, buy, Best Buy
Buy, buy PCs
Buy…. uh oops, iPads
Bye, Bye, PCs
“internal estimates showed that the iPad had cannibalized sales from laptop PCs by as much as 50%.”
Now another survey shows that over 90% of iPad buyers are already owners of Apple hardware.
Is this just really more wealthy Apple owners buying the iPad at the closer and less crowded Best Buys and the more numerous and poorer PC owners not upgrading their hardware from XP?
In my business I’m seeing PC people only getting a new Windows 7 hardware if their XP machine is dying a hardware death. Times are tough and a new machine usually means new software upgrades too.
My last customer had a Dell XP laptop for nearly 10 years and surprise, no malware on the machine what so ever. She did one smart thing, she hired a geek to secure her new machine and set up a shortcut to automate the entire cleaning, backup and malware protection processes when she had a strong internet connection.
Of course she only used the machine on the Internet occasionally, didn’t trade files or email with anyone, didn’t surf for pr0n or warz, didn’t P2P…
_Bill_ – Longview, TX’s Best Buy just got the Apple store-within-a-store treatment recently.
Luckily Apple products sell themselves as finding someone knowledgable at Best Buy is a chore.
@Producerjames
It’s specifically laptops that are lagging. People are keeping their old crappy PCs, but using an iPad for the portable and casual uses. You can set up an iPad on an older computer, your work computer, or somebody else’s computer.
This is one reason why Apple is up $4.43 right this moment, though the market as a whole is up, though by less.
I’d like to see the survey that shows that 90% of iPad owners are Mac and iPhone users. that’s bunk. In the very beginning, that may have been true, but not for some time. Most people I know who have bought them have had no other Apple devices, though now they’re thinking of getting some.
The same thing was said about iPod sales way back when, and then about iPhone sales.
Bizzarro, you really do live up to your screen name.
What is worse for PC manufacturers is that these consumers aren’t coming back:
Apple gear lasts 3-4 years in good condition, the apps they buy won’t run on Windows, the accessories won’t run on NoteBooks (except maybe speakers) and they will keep returning to the physical Apple Stores for support (and a more pleasant reception).
Some of these Windows bungholes are still putting out there that the netbooks are what we need to be fielding in our school system, how much better they are than they are than the iPad, blah, blah, blah (they are Apple Haters and are not certified at nothing but being fools).
I tell them that the iPad has going for it is Apple hardware and OS, the App Store and it’s not Windows junk.
Everyone on the school board uses MacBook Pros and iPads.
Not netbooks.
I think this is further evidence of how successful the iPad TV advertising and related marketing campaigns are for Apple. When consumers can see what they can do with an iPad, it pretty much seals the deal. Millions of consumers already understand how to use an iPod or iPhone by just synching with iTunes, so the logical jump to an iPad is a no-brainer.
I think that in particular, the TV ad campaign selected apps that really showcase what an iPad can do. From a doctor looking at an MRI, to viewing videos, to playing games or creating, the iPad is clearly capable. And as courseware and textbooks become pervasive on the iPad, more families will embrace the purchase of one or more.
For years, PC pundits sneered at the cost differential between a Mac and a Windows PC. Today, with the iPad, the cost to own is so low that such an argument is rendered moot. Surely we will see very cheap Android or Windows-based tablets, but the margins will be forced to paper-thin levels, something I’m sure is not lost on Apple.
While their competition to come will attempt to undercut Apple on price, or even give the pads away for free in exchange for subscription access (“sell the razors, not the blades”), what we’ll see is that the competitors to Apple will commoditize themselves. And when that happens, they will in effect cannibalize their prospects, if not eat themselves altogether.
Apple appears to have played this brilliantly.
@ Mel Gross
Yeah I think you are right on with that, my boss who was die hard crackberry guy bought an ipad a couple months back for his family, loves it and now will be getting an iphone for his next upgrade.
As for an iPad needing a computer, we are getting further and further from that since you can download photos from the camera to the ipad, download music from online directly to the ipad. And, if you have existing digital media then you obviously have an exisiting computer and dont need a new one to support the ipad, you can use any old one.
The ipad is the perfect computer for my grandparents, they can go online a look at family picture, surf the web with there fingers and then print direct to the printer very soon.
And the ipad can do 100% of what i use my laptop for while sitting on my couch which is where i use my laptop 90% of the time.
Just like with the iPhone, Apple is discovering that people want to CREATE content with the iPad- not just consume it. When Apple releases the second version of iPad’s base OS (guessing iOS 5), we will see major rethinks in the capabilities enabling it to do more of the work laptops are used for.
The result will be all the computer many people will need, and developers not porting their apps to the iPad are going to miss a massive opportunity.
Our ingenious plan to save the world from bad computing is working perfectly!
From the article: “Mr. Dunn also said internal estimates showed that the iPad had cannibalized sales from laptop PCs by as much as 50%.”
EXCELLENT!
MDN points out: “And it’s not MacBooks, MacBook Airs, or MacBook Pros that are being cannibalized.”
EXACTLY!
Trolls take note: Your diabolical evil plan to make everyone as miserable as you has FAILed. BWAHAHAHAHA! Happy faces this Christmas, and you just hate it, don’t you.
PS
Devon Technologies, Circus Ponies & Aqua Minds are all developing iPad apps that will tie to their desktop Mac apps- DevonThink, NoteBook, Note Share. Autodesk will also be adding many iOS apps to tie to their SW.
Definition of “shit storm”: 10 million Steve Balmer heads falling from the sky.
@Mel Gross
Yea, it’s looking more about 50% OS X and 50% Windows previous users according to this survey.
http://arstechnica.com/apple/news/2010/04/report-50-percent-of-ipad-owners-use-windows.ars
And the $500 iPad does undercut most Windows laptops, most cheaper Windows netbooks are really slow running P.O.S.’s, unless you strip Windows off and install Ubuntu, then you get some decent performance, except on highly encrypted networks.
My guess the iPad slows down on WPA2/AES as well, given it has a netbook like processor as well.
My advice, wait for the dual core iPads coming early next year, should get better feature/improvement bang for the buck over the long term. The single cores are going to be left by the wayside like first editions iPhones.
@ Bizzarro
I think you might make some valid points, a dual core for the iPad would make sense, you would apply the pad to more corp environments, since it is exposed to data sources that the iPhone with its more limiting form factor would not be as often.
I want one when i get retina display and front facing camera.
@alansky
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WOW, that’s just too nasty to even wrap my brain around