Apple Is No. 1 Computer Seller — If You Count iPads

If you count iPads as computers, Apple could now be said to have the largest market share of any computer maker in the United States.

“The iPad,” writes Deutsche Bank’s Chris Whitmore, “is driving a rapid, unprecedented shift in the structure of the computing industry.”

Apple had a great year relative to the rest of the PC industry, with desktop and laptop sales growing by 24.1 percent when most of its competitors’ revenues shrank or stayed flat. The growth in sales and share is even more impressive when you add in the launch of the iPad, which brings Apple’s year-over-year unit growth to 250 percent.

In a note for clients issued Monday, Whitmore took PC share data from the International Data Corporation’s Worldwide Quarterly PC Tracker and added in figures for iPad sales. The result is the chart above. Apple’s nearly 2 million PCs sold in Q3 gave it the number 3 spot among computer makers in the U.S., with a 10.6% share of the market. Adding the iPads it sold in Q3 boosts it into the top spot.

The number of iPads sold in Q3 will be unknown until Monday afternoon’s earnings call, but estimates put it somewhere between 2.4 million and 6.2 million.

Part of what’s happening here is a struggle to define “personal computer” in a world of convergent and crossover devices. IDC’s data for PCs includes desktops, laptops and mini notebooks, but doesn’t include handhelds or servers. The iPad and other tablets count as handhelds, along with smartphones, e-readers and media players. Even though tablets and ultraportable netbooks fall in the same price range, perform many (although not all) of the same tasks and compete with each other for buyers’ attention and dollars, they’re not grouped in the same category.

Deutsche Bank’s graph isn’t quite fair, because the iPad is the only nontraditional computer added to the dataset. It’s not clear what the numbers would look like if you factored in all tablet computers and smartphones, not just Apple’s. And there may be good reasons, from different form factors to different operating systems, to keep PC and tablet sales separate. In fact, by keeping the numbers separate, you can see just how well Apple’s PC business has done on its own. It’s still behind HP and Dell, but is showing recent growth while some competitors, such as Acer, are losing ground.

But three things are clear. First, the market for tablet computers is enormous. Second, Apple has essentially created that market and currently owns it. And third, if the iPad is cannibalizing sales of PCs, it’s not Apple’s PCs that are getting cannibalized.

All of this makes this week’s upcoming Apple event — and the possible presentation of a new device somewhere between a laptop and an iPad — just that much more interesting.

What If the iPad Were a PC? [Fortune Tech]

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Chipmakers Feel the Pain as iPad Eats Into Notebook Sales

The iPad is the hottest holiday gift this season but one group of companies are unhappy about it. Chip makers Intel and AMD are feeling the pain from iPad sales as the tablet eats into consumer demand for notebooks.

“In the last quarter or two the tablet has represented a disruption in the notebook market,” Dirk Meyer, president and CEO of AMD told financial analysts Thursday. “If you ask five people in the industry you’ll get five different answers as to what degree there’s been cannibalization by tablets of either netbooks or notebooks.”

But the bottomline is that the iPad has cannibalized even the sales of laptops.

AMD is not alone in viewing the iPad as disruptive to the traditional laptop business. Earlier this week Intel CEO Paul Otellini told analysts that the iPad will “probably” hurt PC notebook sales. In the long term, though, Otellini believes the iPad will help expand the category of consumer electronics–much like what netbooks did.

But there’s one major difference. So far, the two major tablets–the iPad and the upcoming Samsung Galaxy Tab and Research In Motion’s PlayBook–don’t use chips from the traditional PC chipmakers.

“Intel is starting to manage expectations better, admitting that iPad would cannibalize PC growth, but it has made the case that it is well positioned in other tablets,” Mark Lipacis, an analyst with Morgan Stanley wrote in a research note. “We remain challenged to find Intel-based non-Apple tablets which can drive meaningful revenues for Intel.”

Since Apple launched the iPad in April, the company has sold more than 3 million devices and has given the category a second lease on life. Other companies such as Dell, Samsung and BlackBerry maker RIM have announced new tablets but the iPad remains the market leader for now. Meanwhile, the halo effect from the iPad has spurred PC sales for Apple. Apple overtook Acer to become the number three PC maker in the U.S. in the last quarter, according to IDC.

“Apple’s influence on the PC market continues to grow, particularly in the U.S., as the company’s iPad has had some negative impact on the mini notebook market,” says Bob O’Donnell, IDC vice president for clients and displays. “But, the halo effect of the device also helped propel Mac sales and moved the company into the number three position in the U.S. market.”

For AMD and Intel, that can’t be good news. Unlike the netbook category, whose rise helped propel sales of chips for these companies, the explosive growth of tablets could help reduce their influence–unless they jump on to the trend.

And that’s exactly what Intel is hoping to do with its MeeGo operating system. MeeGo is a Linux-based operating system for mobile devices that Intel has developed along with Nokia. A key executive departure and news that smartphones running the operating system won’t be available until sometime next year has left Intel and Nokia fighting to stay on course with Meego.

But already a German company WeTab is offering a MeeGo based tablet.

Intel says more tablets based on MeeGo will hit the market next year. Ultimately, tablets will become “additive to the bottom line, and not take away from it,” Otellini told analysts.

But unless some Intel-chip based tablets come to market soon that may be in danger of becoming just wishful thinking.

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Photo: Jon Snyder/Wired.com


Consumers Fail to Take a Shine to 3-D TVs

3-D could just be a fad and consumers may be already losing interest. Sales of 3-D TVs have not been growing as fast as TV-makers expected this year, says research firm DisplaySearch.

High price of the devices and the unavailability of good 3-D content have contributed to the lack of consumer enthusiasm for 3-D TVs, says the company.

Just about 3.2 million 3-D TVs are expected to be shipped worldwide this year. Of these, just about 1.6 million will be in North America.

“While TV manufacturers have bold plans and a lot of new products, consumers remain cautious,” says Paul Gray, director of TV electronics research at DisplaySearch.

3-D TVs were billed as the breakthrough consumer electronics product of the year. Spurred by Hollywood’s success with 3-D movies such as Avatar and Alice in Wonderland, TV makers rushed into launching big-screen 3-D TVs. Almost every major TV manufacturer including Sony, LG, Panasonic and Mitsubishi showed 3-D TVs at the Consumer Electronics Show this year.

Earlier this week, LG introduced a 72-inch 3-D TV, claiming it is the biggest 3-D commerical TV available to consumers currently. In the U.S. big retail stores such as Best Buy and Costco have started selling 3-D TVs.

But so far, consumer reaction to 3-D TVs, has been muted.  Consumers haven’t entirely bought into the value of having 3-D content in their living room. Eyestrain, fatigue and nausea in some people who watch 3-D content has also dampened enthusiasm for 3-D TVs. (See: Four things that could keep 3-D TVs out of your living room)

What TV makers haven’t also solved is the problem of special glasses required to view 3-D. Despite the introduction of the Nintendo 3DS, a 3.5-inch handheld 3-D game console that doesn’t require any special glasses, glass-free technology is years away for the big screen.

But even for those consumers who are ready to don a pair of glasses to watch the TV in their living room, it isn’t easy. 3-D glasses are engineered so they will work only with the brand of TV with which they’re shipped. That means glasses that work with Sony’s 3-D  television won’t work for watching Monday night football at a friend’s place on his Panasonic 3-D TV.

Meanwhile, 3-D content remains scarce. Channels such as ESPN, DirecTV and Discovery have promised 3-D channels that will begin broadcasting only in 2011.

DisplaySearch says it is hopeful some of the constraints around 3-D TV can be solved and 3-D TVs will catch on. Prices of 3-D TVs are likely to fall, says the firm, even as the technology gets better.

Sales of 3-D will TVs grow from 2 percent of all flat panel TVs shipped this year to 41 percent, according to DisplaySearch’s forecast.

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Photo: Jon Snyder/Wired.com


IDC: Apple’s now third largest PC vendor in US with 10.6 percent market share

Apple might be billing its next big event as “Back to the Mac,” but don’t let that fool you into thinking its computer platform has been waning. Quite to the contrary, according to IDC, which reports the Cupertino team has grabbed third spot in the US PC sales charts with a 10.6 percent market share, bumping the incumbent Acer into fourth. Two million Mac shipments during the period represented an increase of 24.1 percent relative to last year, while the overall PC market turned in a somewhat morose 3.8 percent growth. Gartner’s also unleashed its numbers unto the world today, giving Acer the lead for third by the slimmest of margins, but both stat teams agree that the Taiwanese vendor has suffered a bad year along with Dell, which has also experienced some shrinkage. Toshiba’s the only major Windows machine seller to see its fortunes improve with double-digit growth, while HP seems to be hanging on to the top spot nice and steadily. Hit the source links for worldwide numbers.

IDC: Apple’s now third largest PC vendor in US with 10.6 percent market share originally appeared on Engadget on Wed, 13 Oct 2010 18:28:00 EDT. Please see our terms for use of feeds.

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DisplaySearch: consumers playing a ‘wait and see’ game with 3DTVs

We’ve mixed feelings on 3D as a whole, and it seems that the vast majority of consumers do as well. We’ve seen quite a few lovely implementations, and there’s hardly a better way to watch sports away from the field, but those dreaded 3D glasses are likely keeping most people an arm’s length away. According to a new report from DisplaySearch, 3DTVs will make up just two percent of all flat panels shipped in 2010. Paul Gray, Director of TV Electronics Research, noted that “while TV manufacturers have bold plans and a lot of new products, consumers remain cautious,” continuing by stating that “consumers have been told that 3D TV is the future, but there still remains a huge price jump and little 3D content to watch.” In particular, “North American consumers appear to be playing a waiting game,” and in Western Europe, the sales of 3D glasses to sets has failed to hit 1:1. That said, the report feels rather strongly about the future, noting that 90 million 3DTV sets are expected to ship in 2014. Of course, if we’ve only got two or three 2D options to choose from by then, the estimated skyrocketing makes a lot more sense…

Continue reading DisplaySearch: consumers playing a ‘wait and see’ game with 3DTVs

DisplaySearch: consumers playing a ‘wait and see’ game with 3DTVs originally appeared on Engadget on Wed, 13 Oct 2010 09:46:00 EDT. Please see our terms for use of feeds.

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Android Tablets Will Beat Apple iPad, Says Analyst

Apple may be selling millions of iPads today but in a few years Android tablets are likely to surpass the iPad in market share, says a Wall Street analyst.

The Google designed Android operating system will be the iPad’s primary competition and newer releases of the OS coupled with choice of devices for consumers could help put Android tablets ahead of the iPad, Gene Munster, an analyst with Piper Jaffray told Business Insider.

“As in the smartphone market currently, we believe Google’s Android OS will power the stiffest competition to Apple’s iPad,” Munster wrote in a research note to his clients. “Long term, we believe Android could surpass the iPad in tablet market share due to devices from numerous manufacturers.”

The prediction is surprising because Munster is a long-time Apple watcher and in recent years has been extremely bullish about Apple’s prospects.

At least, in the smartphones category Android is surging.  More than 20 Android smartphones are available in the U.S. today. Android is now the most popular OS among people who bought a smartphone in the past six months, according to August data from The Nielsen Company. Blackberry RIM and Apple iOS are in a statistical dead heat for second place among those bought a smartphone recently.

Munster says the tablets category might see something similar. Apple launched its iPad in April and since then has sold more than three million devices. But competitors are taking on the iPad. Samsung plans to make its 7-inch Android tablet called Galaxy Tab available through all the major wireless carriers in the U.S. Dell has already released a 5-inch Android tablet called Streak and says it will introduce a 7-inch model early next year. Meanwhile, smaller companies such as ELocity have also introduced a Android tablet.

The release of Android 3.0 ‘Gingerbread’ version could accelerate the development of Android-based tablets says Munster. Android 3.0  is expected to support 1280 x 768 resolution for displays, the same as that on the iPad. That will make it easier for device makers to take the Android OS and port it on to larger displays–something LG has already indicated it will do. Last week, LG said it will hold off on creating tablets till Android 3.0 is launched–later this year or early next year.

For now, though, Apple has little to worry about. Next year, Android will make up just 26 percent  of the tablet market compared to the iPad at 57 percent, says Munster.

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Photo: (laihiu/Flickr)


Microsoft and Adobe CEOs meet, purportedly plan world domination

Like any two technology behemoths, Adobe and Microsoft have certainly had their ups and downs. But now that Google and Apple are looming over them in a number of ways, it seems as if the two may be courting one another in order to help re-level the playing field. According to a New York Times report — which was crafted after collecting reports from “employees and consultants to the companies who were involved in the discussions that took place” — Microsoft CEO Steve Ballmer and Adobe CEO Shantanu Narayen recently met at the latter’s headquarters for a closed-door meeting. Purportedly, the meeting went on for over an hour and covered a variety of topics, with one of ’em being Apple and its newfound dominance in the mobile market. Shockingly enough, a “possible acquisition of Adobe by Microsoft were among the options” of stopping the skyrocketing growth. The report accurately notes that such a deal makes entirely more sense now that Redmond isn’t exactly the 800 pound gorilla that it was before Android and iOS hit the mainstream, though details beyond these assumptions were few and far betwixt. Whatever happens, no one can blame Steve Jobs for not giving Adobe every possible reason to hit Apple with everything it’s got — even if that involves buddying up with Ballmer and co.

Microsoft and Adobe CEOs meet, purportedly plan world domination originally appeared on Engadget on Thu, 07 Oct 2010 16:31:00 EDT. Please see our terms for use of feeds.

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Android is number one OS among US phone buyers over the last six months

BlackBerry OS? Dead! iOS? Dead! Symbian? Never stood a chance. Android’s exponential growth has today been illustrated by Nielsen‘s statisticians who present us with the above chart of recent US smartphone purchases. It shows that over the six months leading up to August 2010, 32 percent of American new phone buyers had grabbed themselves a device with Google’s OS on board, which is comfortably ahead of RIM at 26 percent and Apple at 25 percent. These results corroborate NPD’s figures on the matter — which peg Android at 33 percent of new US purchases — and reiterate the idea that Android is headed to a place whose name starts with D and ends with omination. One more chart showing total market share can be found after the break (hint: BlackBerry still reigns supreme overall).

Continue reading Android is number one OS among US phone buyers over the last six months

Android is number one OS among US phone buyers over the last six months originally appeared on Engadget on Tue, 05 Oct 2010 12:56:00 EDT. Please see our terms for use of feeds.

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Internet Explorer falls below 50 percent global marketshare, Chrome usage triples

Internet Explorer falls below 50 percent global marketshare, Chrome usage triples

Oh, IE, it pains us to do this to you. You who once so mightily won in the battle against Netscape Navigator now seem to be losing your war against a battalion of upstarts, relatively fresh faces like Firefox and Chrome. According to StatCounter, IE’s global usage stats have fallen to 49.87 percent, a fraction of a tick beneath half. Firefox makes up the lion share of the rest, at 31.5 percent, while Chrome usage tripled since last year, up to 11.54 percent. Two years ago IE had two thirds of the global market locked down, and even if Internet Explorer 9 is the best thing since ActiveX, well, we just don’t see the tide of this battle turning without MS calling in some serious reinforcements.

Update: If you needed more proof of Chrome’s increasing popularity, we got a tip on this report from Softpedia confirming that Chrome is the fastest growing browser of the moment. Firefox is more or less flat and, well, you know all about how IE is faring.

Continue reading Internet Explorer falls below 50 percent global marketshare, Chrome usage triples

Internet Explorer falls below 50 percent global marketshare, Chrome usage triples originally appeared on Engadget on Tue, 05 Oct 2010 07:19:00 EDT. Please see our terms for use of feeds.

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ComScore: Google’s Android surpasses Microsoft in US smartphone market share

Considering that Steve Ballmer himself said that Microsoft “missed a cycle” in the smartphone sales universe, we guess it’s not too shocking to see Android leap past Windows Mobile and Friends in ComScore’s latest US smartphone report. If you’ll recall, we saw back in July that Google was tailing Microsoft by the slimmest of margins, and now that the latest data is live, it’s clearer than ever that Android is rising while the competition is slipping. The research firm’s MobiLens report found that Google’s market share in the US smartphone sector surged five percent in the three month average ending April 2010, while RIM sank 1.8 percent, Apple 1.3 percent, Microsoft 2.2 percent and Palm… well, Palm remained flat with just 4.9 percent of the pie. Of course, one has to assume that Microsoft loyalists are holding off on upgrades until Windows Phone 7 hits the market, but there’s little doubt that the flurry of higher-end Android phones has done nothing but help Google’s cause. And if Gingerbread actually brings support for serious 3D gaming? Look out, world.

[Thanks, S.H.]

ComScore: Google’s Android surpasses Microsoft in US smartphone market share originally appeared on Engadget on Mon, 20 Sep 2010 07:42:00 EDT. Please see our terms for use of feeds.

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