Best Buy CEO: Apple’s iPad has cannibalized laptop PC sales by as much as 50%

Parallels Desktop 6 for Mac “Shoppers this Christmas can expect to see more smartphones, electronic readers and touch-screen computers in the most prominent store displays, underscoring a dramatic shift to powerful portable devices that is fast changing the face of consumer electronics retailing,” Miguel Bustillo reports for The Wall Street Journal. “The new priorities are plainly evident in the changing strategy of Best Buy Co., the nation’s largest electronics retailer by revenue, which is now morphing into a mobile gadget specialist after decades of promoting the latest in big-screen televisions, desktop computers and high-fidelity stereos.”

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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!

33 Comments

  1. 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.

  2. 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.

  3. 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.

  4. “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.

  5. “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…

  6. @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.

  7. 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.

  8. 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).

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