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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Apple iPad, tablet disruption: Five devices in trouble

By | May 5, 2011, 9:29am PDT

Nielsen is confirming what many tech watchers already knew: Apple’s iPad and Android tablets are eating into PC and laptop usage. However, other devices are likely to take sales hits too.

According to Nielsen, Apple continues to rule the tablet roost. No surprises there. The most notable item in Nielsen’s blog post is the devices that are being used less frequently because of tablets.

This chart tells the tale:

If 20 percent or more of Nielsen respondents say they are using a device less because of a tablet that’s a dangerous zone. Using that assumption the following devices are likely to see sales declines going forward:

Portable gaming consoles: Do you buy that new Nintendo 3DS or go up in price and buy an iPad? The tablet impact on gaming consoles is unclear. Twenty two percent of respondents use their portable gaming consoles less, but 26 percent use it more.

  • Portable media players: Apple is already seeing this with its iPod units.
  • E-readers: Chances are low prices will mitigate e-reader cannibalization.
  • Netbooks: I was surprised only 23 percent of folks say they are using a netbook less.
  • Laptops: 30 percent are using laptops less because they have a tablet.
  • Desktops: 32 percent are spending less time on desktops because of a tablet. Tablets and laptops are a double whammy on desktop sales.

Aside from netbooks—where 5 percent of people dumped the device for a tablet—very few see tablets as a replacement.

Also: Nielsen: Tablets pushing owners to spend quality time with smartphone

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Apple iPad, tablet disruption: Five devices in trouble
tringo007 29th Sep
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Common sense tells me that:
Economister 5th May 2011
Portable media players are clearly at risk, except very small mp3 players.

E-readers will be at risk, because as tablet prices drop, the price differential will compress. Nobody buys monochrome PC type displays any longer regardless of price. New types of tablet displays and low cost will render e-readers mostly obsolete.

Netbook stats do not surprise me. The trend is towards greater portability, but if you prefer/need a physical keyboard, tablets generally will not do. Therefore, netbooks or very small form factor notebooks (11 inches) will be popular. Historically, compact/light notebooks have commanded a large price premium that most buyers were unwilling to pay. With that no longer the case, a large percentage of notebook buyers will opt for smaller and cheaper notebooks/netbooks.

Laptops/desktops: A lot of users simple do not need everything these offer. Significant declines will happen.

Portable gaming: Production volumes of smart phones and small tablets as well as frequent performance increases, PLUS the large number of game developers selling their games at a very affordable price level, will make it VERY difficult for Sony and Nintendo to compete. Kids will have smart phones that also act as excellent media players as well as portable gaming devices. I would not want to be a Nintendo share holder at this point in time. They may end up becoming a SW company only.
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Call the men in the white coats
Robert Hahn 5th May 2011
[Nintendo] may end up becoming a SW company only.
I want them to get into the smartphone business. Then, in addition to the people we now see walking down the street who appear to be talking to themselves (with bluetooth headsets in), we will see people talking to themselves and making strange wiggling motions.
@Robert Hahn I merely want to see the iPad start stealing market share from Windows devices in any way possible. There's just too many of those freaking Windows devices around and they're ge t ting on consumers nerves and they definitely want something simpler to use. If Apple sells about 50 million iPads this year, that should put quite a bit of a nick into the high and mighty Microsoft hege mony and revenue stream. Then the great Mr. Ballmer can begin about talking again of Apple's rounding errors when Apple's revenue starts getting close to $30 billion a quarter.
@Robert Hahn Those people who where the bluetooth headsets and make it look obvious because they think they look cool are so annoyingly stupid.

I used to hate wearing one of those things in my ear whilst driving to and from different carpet shops as a rep a few years back and found having something about my ear even more distrcting than anything..
@Economister
Let's hope this puts Chromium to rest!!!!!!!!!! who wants a netbook with ackward keyboard?
@Economister

There you go give your kid a smart phone and watch them waste time socially instead of focusing on education. I've seen it first hand with my kids. Yes folks it's true....technology can make society regress. Let's not forget that with great Technology comes great responsibility. What will your kids focus on? Where's the study about the impact of phones and the education of our children? Where are those results? Oh silly me they won't conduct that study because it could hurt the Carriers bottom line so let's ignore it and wait 20 years before we ask why the kids in America rank dead last in education!
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@rob.sharp@... Wake up, Rob. The kids in America already rank dead last in education. America is basically a stupid nation full of stupid people. Arrogance is king in the US; true knowledge is long gone from your country. The use of devices for communication is world-wide; the US has no exclusivity. Stupidity isn't the result of using tech devices, it's the result of a nation that thinks it's the leader, when in fact it's the assh*le of the world.
  • Flagged
@no_axe_to__grind

Go crawl back under your rock.
  • Flagged
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RE: Apple iPad, tablet disruption: Five devices in trouble
ItsTheBottomLine Updated - 6th May 2011
@Economister
When tables can have the same price, and usabilty as E-Readers you're correct. But right now tablets are horrible anywhere but inside, and the whole thing of being able to read anywhere. My iPad SUCKS as an E-Reader, and you can't even use it outside - overheats. And from what I have seen at work with our demo Xoom it's pretty much the same issue as an E-reader bar the overheat.
@ItsTheBottomLine
Sorry, but I think that's BS. I use my Ipad everyday, personal and work and have yet to have an overheating issue. And where I work, it's a constant 8o Deg F +.
@ItsTheBottomLine Tablets offer so much more than simple ereaders, its far more likely that eReaders evolve into full fledged tablets rather than tablets as is try to compete directly. And in fact, they are. The color nook (no better outdoors than an iPad, but at a far better price) just did this, as a free upgrade. That illustrates well thatthe difference is largely just software. All the pundits see Amazon going the same way, with a new Kindle that can use Amazon's Appstore as well a their eBook store.

But I prefer the full tablet... I'm typing on one. I can read books via the Kindle reader, the nook reader, Adobe PDF, etc. On this particular tablet, in monochrome in bright sunlight, or color where a backlight will work, thank to the Pixel Qi display.
@ItsTheBottomLine

Thank you! I love my various tablets, but for reading... nothing yet beats the usability of my eBook Reader.

I, too, have had tablets overheat... both the iPad and the PlayBook, so far... and, even without the overheat aspect, tablets are too heavy, powerhungry and unreadable for use as a reading device.

I'm sure a lot of people will scream about how their tablet doesn't overheat or they can read on it just fine. I challenge any of them to go sit outside on a hot, sunny day... in the direct sunlight and see what happens and see how usable their tablet of choice is.

I think the problem is most people use tablets for business/indoor use and probably never do any recreational reading... I blame TV. Then there are those of us who actually find it relaxing to read... especially in a park or at the beach.
@Economister Tablets and smartphones are not replacements for portable gaming consoles. I mean yes you can play games on them, but they lack the hardware buttons and controls required to play any real games or be competitive. I know people like to think that capacitive touch screens are just replacements for all hardware interface devices, but they are not.
Tablets are not replacements for any devices. They are only alternatives for checking up on things, and consuming content.
@Economister

E-readers. Depends. My Kindle is soooo lightweight. I still pull it out occasionally, but it has to go under $100 to keep selling, I think.

Netbooks: Silliness. These are the same thing. What distinguishes them? Everyone who made a netbook makes a slate. Is it an ARM vs Intel thing? Whether the keyboard is attached? The OS? You think the Macbook Air and iPad hardware engineers don't talk to one another? I think they're the same people.

Desktops: I use my Desktop MORE now. We video chat on the tablets while we play games. We stream episodes of The Daily show while working or playing on our PCs. It has replaced my second monitor on my PC. Tablets are an enhancement of other computing devices. Desktops should be looking for more ways to leverage that.
@tkejlboom

Plus, your Kindle is readable in direct sunlight...
@Economister

Nice post!

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"Portable media players: Apple is already seeing this with its iPod units."

I woudl like to see people running with iPads before this will really become an issue. Maybe Apple should make a foldable iPad for that
what Android tablets? But I guess you have to pretend there's something other than the iPad out there disrupting this space.
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Trouble .....
Economister 5th May 2011
@frgough@...

growing up? Apparently so.
@frgough@... They're out there but who wants one LOL
@Hasam1991

Samsung Galaxy Tab reputedly sold in excess of 2 million devices.
@ptorning

Wrong. They shipped 2 million.
@frgough@... Funny.

And yeah, let's continue to pretend the smattering of Android wanna be tablets counts as "disruptive".
@frgough@... Well considering how many android tablets are out, and considering their prices, I'd say they make a pretty significant impact as a whole. It wouldnt surprise me at all if between all the Android tablets out, they are selling more units than the iPad.
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Devices in trouble? ROTFL!
Bill Pharaoh 5th May 2011
If you can't see how "scrambling to connect the dots" this article is, then it's not worth explaining!

I had to laugh when I read it!!
I merely want to see the iPad start stealing market share from Windows devices in any way possible. There's just too many of those freaking Windows devices around and they're getting on consumers nerves and they definitely want something simpler to use. If Apple sells about 50 million iPads this year, that should put quite a bit of a nick into the high and mighty Microsoft hegemony and revenue stream. Then the great Mr. Ballmer can begin about talking again of Apple's rounding errors when Apple's revenue starts getting close to $30 billion a quarter.
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@ConstableOdo
Non-fApple, reporting for duty. You mad, bro'?
@ConstableOdo
Maybe on your little DS9 world, but out here in the real world I don't know of anybody who thinks Windows is getting on their nerves.

Maybe that's why Mac usage is still in the tiny percentage domain.
Maybe on your little DS9 world, but out here in the real world I don't know of anybody who thinks Windows is getting on their nerves.

Well now that would be your own little DS9 world, now wouldn't it...
@Bill Pharaoh
Nice to meet you!
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@Bill Pharaoh

Ask Steve Balmer if he considers the OX market share "tiny" (let alone the more important market footprint, which is much bigger).
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@ConstableOdo Wow - you realize it's just a tool/toy and nothing more. Take the kneepads off dude.
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@ItsTheBottomLine

That's the sycophant calling the brown-noser an ass-kisser
@ConstableOdo Yea ok becaues that is going to happen. People are going to start buying iPads instead of real computers. LMFAO give me a break. Windows devices aren't getting on consumers nerves unless your a blind apple fanboi. Windows devices are around because productive machines are needed.
@Jimster480 You obviously don't work in tech support, or in any capacity where you have to be responsible for dozens or hundreds of users. Because if you did, you'd have a clue as to just what a nightmare the everyday Windows experience is for the average user.
To posture that tablet sales are anywhere near seriously detracting from general PC sales whatsoever is purely irrational. The lowest-end PCs are cheaper than most lower-end tablets, and still far more capable systems in nearly every respective field.
@DJVyro Unless people are buying them in very large numbers, and increasing market share, price and performance are irrelevant to the point of the article.
@DJVyro We will just ignore that 40% decline in netbook sales Microsoft just reported.
@His_Shadow Netbooks were a fad anyway. They are super cheap, mostly useless devices with super slow CPUs running full OS's.
@Jimster480 But that knowledge is only in retrospect. Every good Microsoft shill assured us with relentless tenacity that Apple *must* make a netbook if Apple was to remain relevant. And when Apple released the iPad, the same shills assured that the iPad would be buried under a deluge of netbooks.
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Use cases will drive longterm
ZeroGeeZ0 6th May 2011
I have an iPad, use it a ton, and clearly it's taken a chunk out of my laptop time --- so I definitely see that pattern. However, my wife has a Kindle and I can see that it's a totally different device and unlike other e-readers (at least the LCD types) because of the display ... it's just so much more comfortable, less eyestrain for book reading ... than any LCD type device I've seen.

My perfect device would be like an iPad most of the time, be able to change screen modes into e-paper for reading, and fold up into a smaller footprint to replace my phone. Oh yeah and while I'm dreaming, I'd like it to have 3 day battery life, and wifi plus 3G. Guess until then we're stuck carting around different devices for different uses.
@ZeroGeeZ0 I have one, too. However, when I need to actually type anything longer than a tweet, I revert to my MacBook Pro. But still, I do spend more time on the iPad, and once Optimum put out their app for it, I spend a lot more time on it. Cable TV anywhere in the house rules! I was amazed at the quality of it, the interface, and the fact that it is FREEEEEEEE! Still, watching NFL games is a lot better on the 42 inch TV.
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@ ZeroGeeZ0

No need to dream. Pixel Qi.

BTW, not getting the best reviews.
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@ZeroGeeZ0 I have an iPad, however, I cringe at that thought of having type anything outside of an IM Message. I have it when I'm on-call, and have to tether to my iPhone and get back to the office to support something. That's when I have to type and it's really painful. Great consumer device, but anything beyond that and a real laptop/desktop it will never beat. I love watching the bone heads carry a keyboard and the ipad - dude just get a laptop with SSD and instant on.
@ItsTheBottomLine

So you compare carrying a keyboard to type with having to go all the way back to your office? And you call THEM boneheads?!?
@ItsTheBottomLine
iPads and other pretenders will NEVER be a replacement for real computer, but always an accessory to one. Do you know even ONE person the ONLY has an iDevice or Android that DOESN'T also have a standard computer?
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If I owned an SUV, and then I bought a motorcycle, my usage of the SUV would be curtailed by the amount of usage that I would get from my motorcycle. Not exactly the same experience, though.
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@adornoe@...
and use the motorcycle all the time, you just won't be driving the SUV all the time.

Computer makers don't care if you buy their computer and let it sit in the corner 90% of the time, they make their money from the sale, not on how much you use it.

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