Apple hurdles ASUS, Dell, Lenovo, and Toshiba in one leap

Apple hurdles ASUS, Dell, Lenovo, and Toshiba in one leap

Summary: In the second quarter, Apple's share of the global notebook computer market more than doubled, causing the company to surge from No. 7 to No. 3. Guess why?

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In the second quarter, Apple's share of the global notebook computer market more than doubled, causing the company to surge from No. 7 to No. 3 in total units shipped.

According to Deutsche Bank and reported by Fortune, Apple made this move on the strength of iPad sales, which Deutsche Bank included as part of the notebook market. Apple sold 2.47 million units of its traditional MacBook laptops in Q2 and the company also sold 3.27 million units of the iPad, which launched on April 3.

Apple still trails notebook market leaders Hewlett-Packard and Acer by a wide margin, but the iPad surge enabled it to leapfrog all of the second-tier notebook vendors - ASUS, Dell, Lenovo, and Toshiba.

Deutsche Bank analyst Chris Whitmore said, "The iPad is directly cannibalizing demand for other vendors' [notebook] products. Remarkably, Apple's traditional MacBook business posted accelerated unit growth on a Y/Y basis in 2Q, despite the launch of the iPad, while every other Top 5 vendor slowed."

As the chart above shows, incumbents Hewlett-Packard, Dell, and Acer have been the vendors losing the most market share during the past year, while Apple has been the largest gainer. Asian vendors ASUS, Lenovo, Samsung, and Sony have also posted modest gains.

Sanity check

Of course, the big issue here is whether the iPad should really be counted as part of notebook/laptop sales. I'd favor breaking out tablets into their own category or at least as a sub-category of notebooks, since a tablet typically gets purchased in addition to a notebook and not as a replacement.

Then, researchers could have both a notebook category and a tablet category (or sub-category), as well as a larger category that included both. We've seen similar breakouts done with netbooks, where they can be broken out separately or rolled up into the notebook market totals.

That said, I do know a number of people with iPads who say they are using their notebooks less and less. So it could eventually become a replacement for a notebook purchase in some cases. Tablets may already be a replacement for a second notebook for some people. That was the phenomenon that was driving netbooks in many cases. And, that's probably why tablets are eating into notebook sales for Apple competitors, according to the Deutsche Bank data.

The other thing to keep in mind is that Apple is the only one of these seven vendors that currently has a low-cost touchscreen tablet on the market. That won't be the case for long. A year from now, nearly all of these vendors should have competing tablets, powered by either Android or Windows.

This article was originally published on TechRepublic.

Topics: Apple, Dell, Hardware, iPad, Laptops, Lenovo, Mobility, Tablets, Toshiba

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13 comments
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  • Yup that iPad has been such a failure for Apple:P

    The should drop it and find another way to go. I can go on and on and on dig up predictions pre iPad introduction and even post about it's failings and inevitable failure. Now of course as a fall back there is the wait a year or so and Android or Windows 7 maybe even WebOS will bring the iPad down... Like it's never been said before this is of course a "NEW" concept the iPad KILLER!!!! Oh wait it's not a new concept at all is it? Oh well I'm happy for Apple to tell the truth I have yet to purchase an iPad don't have a need for one that I can see nor did I expect it would sell as well as it has but I was at LEAST open to the idea that Apple could know something that I did not and as it turns out they did.

    Pagan jim
    James Quinn
    • Apple

      @James Quinn

      deserves credit for having essentially created two very successful product categories. Personally, I do not like their walled gardens, do not have a pressing need for either product category, and will wait until Android and competition drive the prices much lower. I will then buy both a smart phone and a tablet. I can certainly see the appeal of both.

      As for MS, these new products are the biggest competitive threat they have ever faced. Time will tell whether these products will ultimately be MS undoing. Once you break free of the X86/Windows/Office environment, it is not obvious to me that MS has the ability to compete effectively. Interesting times.
      Economister
  • RE: Apple hurdles ASUS, Dell, Lenovo, and Toshiba in one leap

    A year from now iPad 2.0 will be lengthening the distance between 'others' attempting to replicate its success. The iPad, while not precisely the same device as a netbook, does fill some or most of its uses. Consumers have a choice: A tiny hardly usable, underpowered Windows box that can barely do work and an iPad, a sleek, well designed, fast, consumer device that fills most of your needs and is backed by the best customer service in the world? Easy choice.
    dheady@...
    • RE: Apple hurdles ASUS, Dell, Lenovo, and Toshiba in one leap

      @dheady@... Yup, best customer service in the world. "It's not a design flaw. You're just holding it WRONG!"
      Scubajrr
      • .55% report problems, 1.7% returns.. + free bumpers..

        @Scubajrr .. looks like this it's only the propeller head, Apple haters on tech blogs that don't even own an iPhone that have the big problem (likely too much time on their hands) blowing this WAY out of proportion.. seems there is a miniscule number of REAL, actual iPhone 4 users that are actually experiencing problems and for them they have the options.. moving their hand 1 millimeter or putting a case on their phones.. or returning their phones (which we can see almost no one is doing)..

        nice try guys but you apple hating has not even put a minute dent into iPhone sales... lol...
        doctorSpoc
      • RE: Apple hurdles ASUS, Dell, Lenovo, and Toshiba in one leap

        @Scubajrr Not my opinion. Try JD Powers.
        dheady@...
    • Just like?

      @dheady@...

      "A year from now iPad 2.0 will be lengthening the distance between 'others' attempting to replicate its success."

      That would be just like Android's failed attempts at catching the iPhone, right?

      Look, if you like Apple and their products, fine. The rest of the nonsense we can do without.
      Economister
      • You never answered my previous question...

        @Economister
        It was a day or two ago and the subject was "percentage" increases in sales of phones. You made the point that while Apple's was good Android was better and I asked does that not make sense considering Apple has like a 2 full year or more lead on Android when it comes to selling smartphones right? So during those years Apple has had fantastic sales and has a large installed base to percentage increases will be naturally larger for Android which at this time is fairly new compared to the iPhone right?

        Pagan jim
        James Quinn
      • OK, OK, I remember

        @James Quinn

        I guess at the time I did not consider the question important.

        If I understand your question correctly, the base from which you calculate percentages may matter a great deal. I do not get hung up on astronomical percentage increases from an almost zero base.

        The fact that Android phones are outselling iPhones IS however significant IMHO, especially considering their much later start.

        In order to prevent flame wars (present and future), let me state my position again as clearly as I can. I admire what Jobs has done for Apple and I think Apple produces very good products for their intended customers. Personally however, I like to control the products I buy and I do not like to be an early adopter and contribute to other people's phenomenal wealth. I do not care who those persons may be: Apple executives/shareholders or MS executives/shareholders or who have you. Just as I try to respect other people's choices, I hope they will respect mine.
        Economister
      • Fair enough

        @Economister
        Nor do I argue with our view on control but I've seen what an open world can create.. Been in the field of computer repair and support for close to 30 years now and WOW i mean WOW! Still I understand and respect the view. Still one has to admit that there are a lot of people out there who have no interest in such control cause well their collective mind sets are elsewhere they don't have the knowledge or the interest in such and that is fair as well.

        I think Android is going to be interesting and I fully expect the OS to outsell the iOS after all I witnessed MS success but the fact to me is that it's not Android but Moto that Apple will be in competition with and I'd hate to be Moto or others selling Android devices. They will be numerous and they will fight one another in a race to the bottom both margin and price wise. I'd much rather be Apple in that case speaking purely as a business man. Apple has proven with the Macintosh that it can sell to smaller markets and make a killing year after year while others who make larger sales struggle to survive and many PC makers have come and gone in Apple's time and of those who survive even the mighty Dell has fallen to second place and is still locked in the margins/price war that it started years ago.

        Pagan jim
        James Quinn
      • Don't forget

        @James Quinn<br><br>that most new product categories eventually become commodities, in particular in the tech world. Also don't forget that Apple almost went under being a niche player once before.<br><br>I do not have a crystal ball. Can a visionary/marketing genius create a lucrative business being a high margin niche player on a commodities market? Yes. But Jobs will not be around forever. Mere mortals will take his place one day and they may not be able to continue his success. My biggest concern is that Apple may have squandered its opportunity, again, to control the industry standard in portable computing, by not opening up their design and SW. Apple could find itself in a very difficult position in a few years, when Jobs is gone, and the market is being flooded by good, cheap Android/Chrome HW. If that were to happen, history may judge Jobs as one of the slowest learning geniuses in history.
        Economister
  • RE: Apple hurdles ASUS, Dell, Lenovo, and Toshiba in one leap

    Actually Apple almost went under because they tried to be a commodity player. It is as a niche player that Apple has had the most success. And while Jobs is certainly the key player at Apple his legacy will be a very different corporate culture than the one he found when he last arrived. Certainly a new hand at the helm can change that in time. Look at what Ballmer has done for (to?) Microsoft in his decade at the helm. It will take years to undo that damage as it will most likely take years to undo what Steve has done at Apple. A business model and corporate culture doesn't change overnight regardless of who's the guiding hand.
    dheady@...
    • Not everyone agree's on the specifics about Apple's history.

      @dheady@...
      For instance was Apple going under? Sure their market share was pitfull and MS was at it's peak in those days but I think the facts are that Apple had in reserve several billion dollars that's billion with a "B". And a law suite agains MS for some key IP issues that was settled only after MS invested a 150 million and promised to keep on making MS Office for the Macintosh both of which also helped MS in it's Justice Department case cause what would have happened to MS if Apple had been told by MS that MS would no longer produce Office for the Macintosh? YIKES!!!! The question is a fair one however was Apple going under? Did MS save Apple or itself or both? The big question was how many billions did Apple have in reserves I think I've heard numbers from as low as 3 to as high as 5 billion. If this is true then it goes to show that selling at good profit points is a good thing for it allows well run companies to set aside funds for a rainy day or even decade as the 90's were for Apple:P

      Pagan jim
      James Quinn