Slashdot Mirror


iPad Is Destroying Netbook Sales

Hugh Pickens writes "Fortune magazine reports that sales growth of low-cost, low-powered netbooks peaked last summer at an astonishing 641% year-over-year growth rate but netbook sales fell off a cliff in January and shrank again in April — collateral damage, according to Morgan Stanley's Katy Huberty, from the January introduction and April launch of the iPad. In support of Huberty's theory, she offers a Morgan Stanley/Alphawise survey conducted in March which found that 44% of US consumers who were planning to buy an iPad said they were buying it instead of a netbook or notebook computer. In related news, Apple announced that it sold its one millionth iPad last week, just 28 days after its introduction on April 3. 'One million iPads in 28 days — that's less than half of the 74 days it took to achieve this milestone with iPhone,' says Steve Jobs, Apple's CEO. 'Demand continues to exceed supply and we're working hard to get this magical product into the hands of even more customers.'"

18 of 911 comments (clear)

  1. After a month of daily use... by crumbz · · Score: 4, Interesting

    ...I find the iPad to be a perfect web surfing device. Great for e-mail and watching video. I am actually considering selling my Macbook Pro, as it is starting to get dusty. That said, I wouldn't want to write a novel on it.

    1. Re:After a month of daily use... by shawn(at)fsu · · Score: 3, Interesting

      Hmmm a ~$250 netbook with an OS that allows the installation of arbitrary non approved applications and the ability to install other OSs... Or a $500+ for a closed OS with no ability to install unapproved arbitrary apps.

      Two comments
      1) Dear Apple please save me from your followers
      2) This is the same phenomenon as Ed Hardy popularity

      Typed on my netbook, while listening to Pandora and running an office app to type notes for a final

      --
      500 dollar reward for tip(s) leading to the arrest of the person(s) who stole my sig.
    2. Re:After a month of daily use... by fredmosby · · Score: 3, Interesting

      I got an iPad earlier this week and I haven't used my laptop since. A laptop can do more, but the iPad does everything I need, and it's much easier to use. Actually the screen size isn't a problem because I tend to have the screen closer to my face than a laptop.

    3. Re:After a month of daily use... by Man+On+Pink+Corner · · Score: 3, Interesting

      I think that's the problem. I understand the cool factor, but even a netbook is so much more functional than an iPad that I can't really see the justification of going with an iPad over a netbook, unless you're someone who absolutely, positively despises keyboards and knows you'll only use it for web browsing, iPhone-type games, and e-books.

      There are a few use cases that aren't immediately obvious for a large handheld device with a very high-grade touchscreen. For instance, it makes an unbelievably nice VNC client.

    4. Re:After a month of daily use... by rinoid · · Score: 3, Interesting

      > Tiny screen?
      Not. Smaller than a 15.6" laptop? Sure but bigger or equivalent to most netbooks.

      > no Flash support
      We are still fracking talking about this? Please.

      > no keyboard
      Really?! You point this out? Have you RTFM'd? On screen keyboard in landscape mode does fine for typing pretty long missives -- longer than this one. Bluetooth keyboards take you to the next level.

      It's really not "crippled" or "limited", not in the knee-jerk manner most consider. It's a nice productivity tool, and, it's a great device to have in the house or for travels. It does a ton of stuff.

      My favorite app? iSSH (with VNC tunneling support) ... now that's what I call crippled. Sigh.

    5. Re:After a month of daily use... by jedidiah · · Score: 3, Interesting

      >> Why on earth would you want to use an iPad to browse the internet if you have a laptop? Tiny screen, no Flash support, no keyboard... when did it become hip to use crippled devices?
      >
      > Try it.

      I did. The trailer at Rotten Tomatoes wouldn't play.

      This is especially interesting because of the fact that Rotten Tomatoes was on the browser menu bar. It wasn't just something I picked off the top of my head with the intention of tripping the device.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    6. Re:After a month of daily use... by gstoddart · · Score: 4, Interesting

      Why on earth would you want to use an iPad to browse the internet if you have a laptop? Tiny screen, no Flash support, no keyboard... when did it become hip to use crippled devices?

      You know, if you're holding it at less than arms length, I suspect it's a pretty usable screen size since it' about the size of a book. I see people use their CrackBerry's for Google, and you'll notice they've got an even smaller screen.

      As to flash, I don't have it installed on most of my browsers, so it's not like you're missing anything. I can't view flash on my current machine because I've chosen to do without it -- it' hardly mandatory. In fact, it's a bloody nuisance.

      If you're truly browsing the internet, you mostly don't need a keyboard for the most part.

      With a form factor more like a book, I can see sitting in a comfy chair looking up stuff on the internet or reading an e-book or what have you. And, with a purported 10 hour battery life, that's pretty good.

      I'm not going to run out and buy one, but I'm keeping an eye on them -- might be something to ponder in a year or so if they come down in price.

      --
      Lost at C:>. Found at C.
    7. Re:After a month of daily use... by nine-times · · Score: 5, Interesting

      Yeah, I don't agree that it's "the perfect web surfing device"-- but not for the reasons you're going to get flamed for. People are going to call you crazy because it's a little screen, no Flash, no physical keyboard, etc., but after using an iPad for a while, that's not the stuff that bothers me.

      The real problem with the iPad as a web browsing device is in how it handles tabbed browsing. I browse the web in a particular way, and it's not quite linear. When I'm reading through a page, if I come across a link that interests me, I open it in a new tab in the background. Then I continue on reading the page until there's nothing else I want, and I close the tab. That automatically brings me to the next tab, from which I do the same thing. It's a very easy and natural way of processing things, and I barely understand the point of having multiple web pages open at the same time if you're not managing things that way.

      On the iPad, however, you don't really have tabs. Instead you can back into some other screen where all your open pages appear as thumbnails. Not only is the transition of moving in and out a bit slow and aggravating, but there's no way to open a new page in the background. If you "Open in New Page", it automatically zooms you out, opens a new page, and zooms into that page. Worse yet, a lot of times if you have multiple pages open and you switch from one to another, the page you've just switched to will automatically reload itself. ??!! The whole reason I'd want to be able to keep pages open in the background is so that they'll be all loaded up and ready to go. If I have to wait for them to load each time, then I may as well just bookmark them and avoid the whole shrinky-zoomy animation.

      Apple needs to fix that experience. Along with everything else, they have these nice big touchscreens, and the best way they can come up with to change between web pages is to press a button that zooms you out to look at thumbnails? We can't get functionality to have a quick 3-finger swipe take you to "next tab"?

    8. Re:After a month of daily use... by natehoy · · Score: 3, Interesting

      As a notebook user who knows several other notebook users, and is also a tablet (iPod Touch) user who knows other tablet users, not just "no" but "hell no". The devices may seem identical on the surface, but they are fundamentally different tools for fundamentally different uses.

      Don't get me wrong, I own an iPod Touch (won it in a contest) and I love the thing for what it does, and there have been many occasions where I've thought, "you know, something like this with about a 10 inch screen would be utterly brilliant!". So I understand the demographic and applications of the iPad fairly well.

      But when it came to a portable device, I chose a netbook. I use it for a lot more than iPhone-type games, web browsing, and e-books. Well, OK, most of my stuff technically qualifies as "web browsing" but a lot of it involves typing (case in point, what I'm doing right now). The difference between a tablet and a netbook is in the ability to interact. I can have a video conference on my netbook. I can type whole paragraphs on it. I can't sit comfortably on the couch and watch a movie on it, nor can I do a crossword puzzle easily on it. Reading books on it is frustrating - especially while sitting up in bed - it's too heavy and the damn keyboard gets in the way.

      I see the iPad as cutting into the Netbook demographic because Apple is the first to introduce a somewhat affordable and (within strict limits) very functional tablet that doesn't completely suck, and many of the tablet demographic have been going to Netbooks because they are close enough, not because they are what they actually want. Now that there's a completely-non-sucking tablet out there, the tablet-desiring demographic is discovering that they need not be encumbered by a keyboard and a form factor that doesn't quite suit them, and they can buy precisely what they do want. They just have to put up with the compromises of a closed ecosystem, but that isn't as much of a downside for a tablet as it is for a netbook anyway - you use a tablet more for passive consumption, not so much for interaction.

      So, netbook sales are not being "destroyed". They will drop, though. The demand is adjusting to account for the simple fact that not everyone who bought a netbook last year really wanted a netbook. Some of them really wanted a tablet, but they settled for a netbook because it was the closest thing that they could find. Now that the tablet niche has been competently filled with an affordable device, the netbook niche will see a loss of some of these crossover sales.

      Doesn't mean the market for netbooks is going away. It just means that there's a giant pent-up demand for non-sucking tablets, so Apple moved a lot of units based on that pent-up demand. Netbooks will still sell to people who want netbooks, but they won't sell to people who want tablets any more.

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
  2. Not surprising by TheRaven64 · · Score: 5, Interesting

    NetBooks were always strange devices. Marginally more portable than a laptop (although not portable enough to fit in a pocket), and a lot less powerful. Their only real advantage was their cost. They were very cheap, but since the original EeeeeeeeeeeeeePC they've gradually crept up in price and now they're just too expensive for what they are.

    The iPad, in contrast, is not just a cheap laptop. It fills a distinctly different need to a laptop. I've not entirely worked out what that need is - it seems to target a market that doesn't contain me - but it's clearly not the same set of uses as a laptop.

    The iPad isn't killing Netbooks, they're doing that all by themselves. The iPad is just giving people who might have bought one and never used it after the first couple of months something different to waste their money on.

    --
    I am TheRaven on Soylent News
    1. Re:Not surprising by LWATCDR · · Score: 3, Interesting

      The iPad has a better screen than most netbooks and a longer battery life.
      I am still waiting for a smartbook. I don't need windows on a mobile device. I have a notebook if I need windows.
      I can do everything I want on a mobile device just fine with Linux on an ARM.
      I would like Flash for it until Firefox decides to support H.264 but other than that I really could do everything on Ubuntu running on say a TegraII with a nice screen.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  3. Hype-Cycle by prefec2 · · Score: 4, Interesting

    First there was no such device as a netbook. Then the geeks saw the OLPC and then they ran around, screaming "I want one of these!!!!" After some screaming, Asus thought it might be nice to sell some of these devices to geeks. Hey its about money. And then more people saw that netbooks are nice devices so they bought one. As the demand for netbooks was high the sales jumped up (because the industry suddenly provided a portable product which was very much needed by many people). Now most of those people who want a netbook have a netbook and so the sales are going back. Also there was/is a financial crisis going on. And while the crisis more or less hit the public in the US very quickly it took some time to have an affect countries with "social backup systems".

    So in short: It is not a falling of a cliff it is just the end of a peak. And yes, as already mentioned, there are no really cheap netbooks anymore.

  4. Re:Sheer Madness by CrackedButter · · Score: 3, Interesting

    Hence the ipod touch?

  5. Just bought a netbook by Geeky · · Score: 3, Interesting

    Well, I just bought a Samsung netbook.

    I needed a lightweight, long battery life device mainly for better browsing than a smartphone while travelling. I like to be able to type emails on a proper(ish) keyboard, same for web forums.

    I do a lot of photography and the 250GB harddrive is ideal to back up my compact flash cards and quick preview my shots - I used to use a dedicated Epson view for that.

    It has HyperSpace, which is a boot option that takes you into a cut down linux system - it boots faster, uses less battery and is therefore a handy option when all you want is to browse.

    Initial thoughts are that it's not that quick, but I also ordered a 1GB upgrade and when that arrives it should improve the Windows 7 performance (yes, Windows. Suits me. Sorry). Battery life seems good - I reckon the 11hrs quoted might be ambitious, but my experience so far says I should get 8 or 9 from normal use, including WiFi. Sticking a 3G USB dongle on will probably drain it quite a bit quicker...

    It was also under £300.

    Absolutely no reason I'd want an iPad.

    --
    Sigs are so 1990s. No way would I be seen dead with one.
  6. No, it wasn't the iPad .. but Steve Jobs was right by Azureflare · · Score: 3, Interesting

    Netbooks just suck. That's why no one's buying them anymore. It's not because of the iPad.

    We have a hard time justifying buying an inferior tiny product that you can barely see, which can't really do that much, especially when almost everyone already has a laptop or desktop which works just fine.

    The iPad is successful with people because it provides a big huge screen which is great for lying in bed or sitting out on the patio relaxing with. While this is possible with a laptop, the iPad is much more conducive to a more relaxed environment (the ads for the thing were spot on in my opinion).

    Also it does have a longer battery life than a standard laptop. Laptops tend to chew through batteries way too fast these days.

  7. Netbooks did themselves in... by ISurfTooMuch · · Score: 4, Interesting

    ...with help from notebooks.

    When netbooks came on the scene, they were dirt cheap. Sure, they could do less than a notebook, but, again, they were dirt cheap, they were small, and battery life was good. Just what you needed for Web browsing and light productivity work. Oh yeah, and they were dirt cheap, easily several hundred less than most notebooks except that once-in-a-blue-moon sale you might run across.

    However, this didn't last. Companies started cramming more and more into these things, which drove the price up. In and of itself, that might have been OK, but notebook prices started coming down, and they offered more features. They were bigger, but you could do more with them, and I really believe that a significantly lower price is what drove netbook sales, not merely their size. So, people could spend maybe $250-$300 for a netbook, or, if they caught a sale, they could spend $350 for a basic notebook, which offered much more bang for the buck. That's what killed netbook sales, IMHO.

  8. Look and Feel by savanik · · Score: 4, Interesting

    A friend of mine has one that I got a chance to try out. It's an interesting little device - I'm not going to get one, but then, it's not meant for me.

    The iPad does notably excel in one simple thing that I have been missing for the past few years. It has no interface lag. My phone? When I'm switching screens, it lags for a couple seconds. My two year old laptop I got fed up with and threw out because the power jack kept breaking? Opening a directory took a noticable amount of time. Even my streamlined, power-user, performance gaming desktop has moments where its trying to access things and it chugs along before giving me any feedback.

    The iPad's interface is responsive. It does what you want it to, when you want it to. When you drag an icon around, it responds immediately. When you poke at a link, it responds instantly with feedback - the webpage might take a moment to load, but it lets you know it's heard you immediately. And everything else in the environment remains responsive. You access the dropdowns, they come right down. You hit the 'menu' button, and you don't get 'the application is waiting to close' hourglass or anything like that, you get MENU.

    I can see how that would appeal to many consumers in a world of stuttering, jerky computers.

  9. Re:1 million iPads vs 20 million Netbooks by RyuuzakiTetsuya · · Score: 3, Interesting

    1 million iPads in 30 days versus 20 million netbooks from dozens of nameless, faceless vendors in 365 days.

    iPad sales have plateaued, but I wouldn't be surprised that by the end of the year, that number starts to approach 2 million.

    Compared to any given Netbook product this year, the iPad will outsell it by a wide margin.

    --
    Non impediti ratione cogitationus.