Apple’s iPad ‘buzz saw’ cuts into Windows PC sales

“The iPad is wreaking havoc on the personal-computer market,” Aaron Ricadela and Dina Bass report for Bloomberg.

“Hewlett-Packard Co. consumer PC sales plunged 23 percent last quarter, and the company lopped $1 billion off its annual sales forecast,” Ricadela and Bass report. “And while rival Dell Inc. beat analysts’ estimates because of corporate demand, its sales to consumers slumped 7.5 percent.”

Ricadela and Bass report, “More than 70 million tablets like the Apple Inc. iPad will be sold in 2011, a total that will balloon to 246 million in three years, Jefferies & Co. said yesterday. ‘You’re walking into a buzz saw,’ Jane Snorek, a senior research analyst at Nuveen Asset Management in Milwaukee, said of the iPad. Her firm manages more than $200 billion in assets. ‘The tablet is going to replace at least the home computer.'”

Apple’s revolutionary “iPad has siphoned off more PC sales than analysts and executives predicted,” Ricadela and Bass report. “The PC market, by contrast, declined last quarter. Global shipments fell 3.2 percent, hurt in part because some consumers bought tablets instead, [versus Apple Mac sales which were up 9.6%] research firm IDC reported last month… The success of the iPad, along with the iPhone and new versions of the Mac, helped Apple supplant Microsoft as the world’s most valuable technology company last year.”

Read more in the full article here.

MacDailyNews Take: Let’s see, Windows PC sales are down. Apple Mac are sales up. Mac sales have outgrow Windows PC sales for 20 straight quarters and counting. In the consumer market, where people have a choice, they choose Apple Macs and/or iPads. The last bastion of the Windows PC is the always-behind-the-curve corporate market where people generally don’t have a choice. Eventually Apple will take that market, too. Mr. IT Doofus, your rude awakening is finally, blessedly nigh!


  1. “Ricadela and Bass report, “More than 70 million tablets like the Apple Inc. iPad will be sold in 2011…”

    Um, what is out there that is like Apple’s iPad? Looks to me like 69,999,976 of those will be iPads….and 4 Xooms.

  2. … else why would Mac sales be “up”! I can see tablet sales replacing many laptop sales, yes. And I can see ever better laptops replacing desktop sales – pretty much a wash for the laptop segment. But, tablets do not address the same needs as desktops. And laptops can’t do it all.

    1. But laptops can do MOST of it.
      I think we’re going to see desktops becoming niche machines, used by a very small minority to do “industrial-strength” tasks.
      The rest of us will have laptops and/or tablets.

      1. CAN play WoW, CAN edit a video (movie), CAN edit GarageBand, but it’s so much harder to get it right there’s no fun in it. For generic surfing, e-mail, solitaire, video conferencing and the like it is just fine. But I do more, need more.

    1. The only thing worse than an IT doofus is an IT doofus manager. They are so dumb that they either 1) believe what the IT doofus tells them , or worse, 2) tell the IT doofus what to use.

      With any luck, Apple will make that an endangered population.

  3. given my computer needs, I have a desktop at the two offices I go into regularly and my home workstation…a MB Air when I’m traveling and a tablet for casual surfing…I’m pretty covered along with the iPhone

  4. I figured out the corporate IT thing years ago. Because they understand their PC hardware and software far better than the employees, they love their stranglehold over all employees from the CEO on down.

  5. The iPad started the fall for the Windows PC assemblers, but another development is going to finish them off.

    Businesses are starting to move away from the decade-old practice of putting a PC on every employee’s desk. Where I work, we are moving to a “thin client”, essentially a rebirth of the dumb terminal, which communicates with a Windows process that runs on a server. No PC is needed, and this virtual desktop can also be accessed on any home computer, or even on an iPad or iPhone.

    This will [b]kill[/b] Dell and HP. Their PC sales have been propped up for years by large and midsize businesses who literally buy truckloads of cheap PCs for all their employees. All those sales will go away.

    Look for a huge shakeout in the commodity PC market in the next few years. I predict at least one of the major PC assemblers will either go under or merge with a competitor.


    1. Dumb terminals should never have fallen out of favor except for the Windows licensing push. Most businesses could easily be run using dumb terminals with some local storage per station. From a cost standpoint, I really don’t understand how the Windows desktop ever managed to replace the mainframe/minicomputer. Maybe it had to do with licensing programs on mainframes and such. I remember the transition where I worked and it had to do with being able to run word processing applications and spreadsheets locally. Maybe the mainframes didn’t have those applications available to them. Still, for those PCs I set up, I’d usually install a 3278 card in them so they could be used as dumb terminals.

      It’s weird how Windows PCs just took over nearly everything in corporations when it wasn’t even necessary in most cases.

  6. As long as the iPad has to be tethered to a computer, it can’t totally replace them, but I would imagine that Apple is working on an independent version for release when the time is right.

    And yes, I’ll love it when the snarky IT shit wits get their comeuppance. All these years of lying – telling their companies that the PC was the best platform.

  7. A big test for Apple will be to see if it can come up with a way to untether the iPad from desktop/laptop. Currently, in order to get any real use out of the iPad you need to have a PC or Mac, and at least on the Mac side you need a 867 GHZ G4 more more, and at least Leopard.

    The iPad will be conceivable as a replacement for a PC when you can unbox the iPad, set it up with nothing required other than a wireless connection, update the machine wirelessly, transfer files wirelessly, etc. The iPad isn’t a PC replacement until you only need the USB cable for charging the thing.

    I hope that’s what Apple’s data center is all about.

    1. I’m thinking Mac Mini, using the TV as its display, acting as media server and sync facility for iPhones and iPads. Might give up the MBP, although I really like this computer. So much goodness, so many choices.

      1. I’ve done exactly this. Mac Mini hooked up to the TV using one video port. I also have a desk the other side of the wall that the TV is on, which has a monitor connected to the other video port. A wireless keyboard and trackpad allows me to use the use it as a computer when not displaying video on the TV.
        Connected to the mini are 2TB drives that contain my iTunes library. It can drive video to any Mac or iOS device in the household.
        The only thing the MacMini needs is the the AppleTV app interface. I imagine this will be available with Lion.

  8. IT doofus waste so much of my time with their stupid microsoft products. Between PC browsers not properly rendering CSS and JS, to clients refusing to migrate from .NET and lost emails to Microsoft Exchange servers misconfigured by IT doofuses or doofi, to clients with PC computer problems, to Outlook completely sucking, so much time is wasted due to this horrible monopoly perpetuated by IT doofi who owe their jobs to tech obfuscation.

    I tell every new client that I sign to get a mac. They used to laugh. Then they listened. Now, most of my new clients are already on mac. Among my clients, it has gone from 30/70 mac to PC to 90/10 mac to PC. Most of my clients are aggressive SOHO to medium business owners and it really helps that they’ve switched to mac and are not wasting so much time, since the bottom of our rates has dropped out due to international competition.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.