Tablets Cannibalizing Both Laptops and Netbooks

Logic would suggest that tablet devices partly represent a new product category, but also partly will cannibalize some other related products, such as e-readers, laptops or netbooks.

Conventional wisdom suggests that, to the extent there is product substitution, tablets will cannibalize netbooks, and a new survey by Google suggests there is some truth to that notion. About 9 percent of laptop shoppers, and 19 percent of notebook shoppers, indicated they at least considered buying a tablet instead.

One suspects there will be stronger substitution patterns over time as lower-cost tablets appear in the market. Looking only at device cost, and not capabilities, many consumers might conclude that a netbook or laptop costs $100 to $300 less than a tablet, thus providing the better combination of value and price.

A change in tablet retail price could change behavior, though, encouraging a wider range of notebook and netbook buyers to consider getting a tablet instead.

Tablets Cannibalizing Both Laptops and Netbooks