PCs Getting Less Use at Small Businesses

A survey of 2,223 owners and managers at companies with less than 500 employees, most of them with between five and 499 workers, suggests that "PC" use is declining, while other digital devices, including tablets and smartphones are taking up the slack.

Beyond the finding that nine percent of business owners were using iPads (as of November 2010), the study found that 79 percent of small- and midsize-business owners used a desktop computer, down from 83 percent in 2010.

Some 16 percent used a netbook or notebook, down from 21 percent earlier in 2010.  About 60 percent used a laptop, down from 65 percent.

Note the trend: tablets up, desktop PCs, netbooks down, notebooks down.

About 37 percent used a smartphone or other personal digital assistant, up from 27 percent the prior year.

Fully 31 percent were using mobile applications, a category that wasn’t even measured the previous year, on smartphones, cell phones, or tablet computers.

What all of that might mean is that many business and work tasks really do not require much in the way of content creation, beyond replying to emails or social media messages.

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Netbook Demand Seems Weaker: Issue is Why

A ChangeWave survey of 3,108 consumers during October suggests essentially-flat demand for desktop PCs, unchanged levels of demand for laptops and lower demand for netbooks. Most observers will be quick to point to stronger demand for tablet devices as the reason for the lower interest in netbooks.

The percentage of respondents saying they plan on buying a desktop over the next 90 days (six percent of respondents) has ticked up one point since ChangeWave's survey in August, while planned purchases of laptops (eight percent ) remain unchanged.

Consumer interest in netbooks (14 percent of respondents) is down about 10 percentage points since the June 2009 survey.

Changewave survey - tablet pc and apple ipad

Laptop, Netbook Sales Dip as Tablets Grow

Market researcher Gartner has trimmed its global forecasts for laptop shipments, but still expects a 26 percent increase to 214 million units this year. The firm says the average selling price of portable PCs has fallen six percent to $668 from $710 a year ago.

Netbooks likely have been affected. The Consumer Electronics Association predicts U.S. retail sales of netbooks, which more than doubled last year, will decline 12 percent this year.

iPad is What You Want, Not What You Need

Though we are far from knowing the ultimate success or impact of the tablet PC movement, there is some evidence that Apple is, in fact, creating yet another new market, rather than simply reshaping or displacing an older market.

Gartner Group analyst Carolina Milanesi says "I am also more convinced that this is a device that you want and not a device that you need." That is an instructive comment, as it suggests users may be finding the iPad less a full substitute for a notebook PC or netbook and more a "different" device that might be used in different ways.

"Between my iPhone and my MacBook Pro I have to consciously decide to use my iPad to do anything but read a book, which is the only thing I cannot do with the Pro and I would rather not do on the iPhone because of the screen."

The use case here is, as Apple hoped, something potentially different from a smartphone or a notebook PC.

iPad goes on sale today across key markets in Europe

Netbooks Squeezed Between iPads and Laptops

A new survey by Retrevo suggests netbook sales are getting pressure from iPads and notebooks, and the iPad might have gotten as much as 30 percent of potential netbook sales so far this year.

The Retrevo survey also suggests that consumers who were debating buying either an iPad or a netbook have decisively decided to buy an iPad. According to Retrevo, 78 percent of respondents who indicated they were waiving between an iPad and a netbook ultimately decided to buy an iPad.

Laptops are not as “portable” as netbooks but are getting cheaper. Of those consumers who wrestled with the decision to buy a netbook or laptop, 65 percent chose the laptop and 35 percent chose a netbook over a laptop.

Looking ahead, about 35 percent of consumers who say they are now considering a laptop or netbook purchase over the coming year say they are leaning toward a netbook over a laptop, while 65 percent are leaning toward a laptop over a netbook.

Retrevo therefore predicts netbook sales will get squeezed from two sides and will not be able to maintain past growth rates.

None of this yet settles the question of whether the iPad is "merely" a new form factor for mobile PCs or a new product category.

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What Gets Cannibalized by iPad and Other Tablets?

As you might have expected, though lots of people think the Apple iPad is a gorgeous device, lots of people also think it is a bit pricey.

So far, iPad buyers are heavily skewed to 30-somethings and 40-somethings who presumably are well along in their careers and have both the appetite and the means to splurge on one.


Some technology observers have been predicting the demise of the netbook for some months, and with the launch of the Apple iPad, we get our first chance to see whether cannibalization is happening.

The basic line of thinking is that netbooks get squeezed between more powerful smartphones and tablet devices such as the iPad.

A new study from Morgan Stanley concludes that tablets in general will be a big threat to netbooks, as some have suggested.

Netbook sales growth has been significantly flatter lately. Sales still are increasing, just not at the rate they were before. Last July, growth was at 641 percent. In December, growth was 179 percent, and in January it dropped to 68 percent.

According to Morgan Stanley/Alphawise, the biggest product category likely to be cannibalized by potential iPad customers is netbooks and laptops. About 44 percent of potential iPad customers say they'll get it instead of a notebook or, presumably, netbook.

About 27 percent said they'd buy an iPad over a desktop.

To be sure, netbook sales were slowing before the iPad launch, so the slowing netbook growth rate can't be blamed completely on the iPad.

Still, it seems inevitable that netbooks and other cheap ultraportables will face competition from the iPad.

Product cannibalization potential

Netbooks Are Changing Consumer Expectations

A new survey by PriceGrabber.com suggests netbooks have set new expected price points for computer purchases, an outcome many suppliers likely feared would be the case.

The percentage of online consumers who personally own a netbook has increased from 10 percent last year to 15 percent early in 2010. Moreover, 11 percent of consumers plan to purchase a netbook in 2010.

The disparity between the dollar amount consumers are willing to pay for their next device compared to the amount they paid for their last device is evident. About 65 percent of consumers say the maximum amount they plan to spend on their next computing device is $750, even though 52 percent of online consumers spent more than $750 on their last device.

The average price of products in the PriceGrabber.com laptop category dropped to $645 in December 2009, from $808 in December 2008. This suggests a 20 percent decrease in average price.

Netbooks are more of a complement than a replacement for laptops, though. Some 55 percent of consumers do not see a netbook as a feasible replacement for a laptop. Additionally, 63 percent indicate that a netbook is best described as an additional device while on the go, not a substitute for a notebook or desktop PC.

The largest age group of netbook owners has shifted from 35 to 54 years to 45 to 64 years over the past year, the survey suggests.

In January 2009, 53 percent of netbook owners were between the ages of 35 and 54 as compared to only 31 percent one year later. In January 2010, 55 percent of netbook owners fall within 45 to 64 years of age as compared to 43 percent last year.

Of those consumers who indicate personally owning a netbook, 86 percent also own a laptop and 73 percent also own a desktop. More netbook owners indicated also owning laptops and desktops last year.

The survey suggests there is an opportunity for netbooks to cannibalize other products, though. In fact, 72 percent of consumers see a laptop as a feasible replacement for a desktop, 45 percent of consumers see a netbook as a feasible replacement for a laptop, and 27 percent of consumers see a netbook as a feasible replacement for a smartphone.