Tuesday, October 24th, 2017

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Gadgets eating away at PC market

Despite early criticism, the iPad has reshaped the electronics market.Around the world, people are dealing with a flood of new gadgets from smartphones to e-readers to tablets. For consumers the biggest problem these gadgets cause is figuring out how to carry them all, but InformationWeek reports that they have actually had a substantial impact on the broader computer market.

Earlier this year, market analysts at IDC predicted 7.1 percent growth for PC shipments in 2011. That estimate has since dropped by nearly three points to 4.2 percent, after a slight year-over-year decline in the first quarter. The primary culprit many are pointing to is the rise of tablets, but more specifically the iPad.

Since its introduction in April of 2010, the iPad has sold more than 20 million units. While tablet sales as a whole fell 10 percent, the iPad has continued to see high demand. CNET reports that most tablet producers have cut production forecasts by roughly 10 percent due to low demand However, iPad projections remained the same at 38 million, nearly five times the next highest total.

“Our tablet unit assumptions amount to 32 percent and 21 percent of desktop and notebook PC units, respectively, which we think means that tablets stand to be big enough to have positive (or negative) spillover on the broader tech food chain,” JP Morgan analyst Mark Moskowitz told the site.

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