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!

44 Comments

  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.

    ——RM

    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.

  9. The corporate demand will change after Apple powers up the Mac OSX based billion dollar server farm. Steve Jobs is not using Dell or HP PCs to run that farm!

    Consider a blend of server farm, super computer and AI at the finger tips of Apple OSX and iOS users. All those iPads that are going to be used in all of Apple Stores will be the demo / show piece of a good corporate OSX based server system.

    Buzzed? No, CRUSHED! The Apple devices took out there low end base. Now, it is time to crush it from the top down!

  10. A load of BS

    As NDP pointed out recently, there is no proof there is a correlation. 75% of iPad buyers they polled said they had no plan to buy a PC.

    LOL – MDN makes it sound like Windows is doomed. Its not. Many many home users still want Windows. I love my iPad but I can’t stand using Macs.

    1. Hey MDN, I know that you guys are no longer immediately post comments. But did you lose this comment from ivid? With a statement like: “Many, many home users still want Windows” I can only assume the comment was written in the 1990s.

      1. I guess you are not aware of how well Windows 7 has sold since its release. Look at that tiny piece of the pie that Mac makes up in the overall computer sales market. PC’s still outsell Mac’s by an enormous margin, so why am I even wasting my time typing this ?

        What world do you live in if you think more home users want a Mac or other device over Windows ?

        1. I can’t believe I’m reading this nonsense. Given a choice most people would want a Mac, no question about it. it’s doofuses like you who haven’t caught up to the new century that still want to stick with PCs. Of those who do, 90% of the case is due to economic reasons, which I understand. But they would gladly ditch Windows given half the chance. Windows is clunky, difficult to use and simply not logically laid out. Not to mention an eyesore.

  11. As much as I’m glad to see Apple doing well, the iPad seems more aptly described as an iFad. The local gov’t here is dishing them out to executives so that they can look like they are “with it and up to date”, but they have no idea what they are going to use them for. My wife’s director has both, sitting unopened in their boxes, in a corner of her office while she continues to use her BB and Levono laptop. All the gov’t executives have received them, but she’s yet to see one actually use them.

    1. As with anything else there is a learning curve to be negotiated. It depends on how you want to leverage the tool you’ve been given. If you let it sit there for sure it’ll gather dust. But if you get some training, maybe a day’s worth, then you will see the possibilities to be had with the iPad. For example you can take notes with it, sync it to your desktop wirelessly or any number of things executives do with notebooks. It’s quite a marvellous device except you have to dedicate yourself to learning how to use it instead of taking for granted you know everything about it. In this regard I would encourage your wife to download some podcasts relating to iPad tutorials available on iTunes for free to see what kind of productivity gains can be had by understanding the various apps available that suit her use case.

      1. Thanks. My wife did go to the trouble to charge them up and make sure they were up and operating by using Safari. However, she’s just a secretary and can’t *tell* her director to use anything, so in the box they appear to be sitting until the battery dies. The situation appears to be repeated at every level of gov’t across our province. Everyone has them but nobody’s using them, apparently unwilling to break with their Windows centric dogma.

        As for myself, unlike the ubiquitous iPhone when it hit the market, I still haven’t seen a single iPad in use except on the news while local politicians posed for a media shot.

        1. No problem buddy. Glad to be of help. It’s not that the iPad is incapable of doing the things that it was designed to do but more a case of people who have been given it don’t wish to break out of their Windows prison to learn something new. Is it any wonder that Windows controls its drones through the Stockholm Syndrome.

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