What is iPad Cannibalizing?

If Apple Macintosh computer sales are up 39 percent, while iPod sales are down 17 percent, might that imply that sales of the Apple iPad are cannibalizing iPod sales? That is what Piper Jaffray research analyst Gene Munster appears to believe.

U.S. Mac sales are up 39 percent year over year for the month of April, and in fact have been up, year over year, every month so far in 2010, according to researchers at NPD. NPOD's data also suggests Apple iPod sales are down 17 percent year over year for the month of April, and have been down for half of the initial months of 2010.

It stands to reason that at least part of the market share the Apple iPad is getting is coming at the expense of other products or suppliers.

At the various least, consumers might be forced to put off buying something else if they decide to buy an iPad. But at least some observers think Apple is cannibalizing itself.

"April NPD data gives us the first sign of the degree to which the iPad cannibalizes iPod or Mac sales," says Munster. "From the early NPD data, it appears that the iPad has a minimal cannibalization impact on Mac sales, and could be slightly cannibalizing iPod sales."

Given the average selling price of the Mac, which is about four times greater than that of a typical iPod, that likely is good news for Apple, at least in terms of revenue, Munster thinks.

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