Eyebrows — those highly mobile facial features that always get raised when people are astonished — got a good workout Tuesday at Apple’s quarterly earnings call. Apple COO Tim Cook surprised analysts by stating that some customers are spending their money on iPads instead of new Macs. There’s long been suspicion that the iPad has been eating into sales of laptop and desktop PCs. But this may be the first time Apple’s acknowledged that its tablet may also be eating into its own computer line.
When a pc maker loses a sale, it's a lost sale while a non Mac buyer might buy an iPad. While it's less revenue, the margins are the same AND higher post sales with iOS in apps so at the end of the day, what's really the difference selling an iPad and a 999 MacBook? Plus with apples iPad and hardware satisfaction rate at 80-90%, they are either going to buy a second one or buy a Mac. Apple can't lose. It seems clear once users start using iOS, they are bought into the ecosystem on a lot of levels. Apple has got it all figured out. You other buy a Mac or an iPad with the same margins while a pc maker either loses a sale entirely or sells a netbook t a low or super low 2% margins. Apple wins.
"It's possible that move toward the post-PC era is backfiring on Apple to some extent, leading to flagging sales of the Mac."
This is like saying "The Acme Buggy Whip Company would be foolish to go into manufacturing this newfangled product called the 'horseless carriage' because that would certainly eat into their sales of buggy whips."
It's not clear to me if it's the analyst who said this or the MacNewsWorld writer, but it's incredibly uninsightful thinking. The one thing that Apple clearly understands (and that Microsoft never has) is "you better cannibalize your own products or your competitors will do it for you."
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Tablets, Desktops, Notebooks: Who's Eating Whom?
Posted by: Richard Adhikari July 22, 2011 05:00 AMEyebrows — those highly mobile facial features that always get raised when people are astonished — got a good workout Tuesday at Apple’s quarterly earnings call. Apple COO Tim Cook surprised analysts by stating that some customers are spending their money on iPads instead of new Macs. There’s long been suspicion that the iPad has been eating into sales of laptop and desktop PCs. But this may be the first time Apple’s acknowledged that its tablet may also be eating into its own computer line.
This is like saying "The Acme Buggy Whip Company would be foolish to go into manufacturing this newfangled product called the 'horseless carriage' because that would certainly eat into their sales of buggy whips."
It's not clear to me if it's the analyst who said this or the MacNewsWorld writer, but it's incredibly uninsightful thinking. The one thing that Apple clearly understands (and that Microsoft never has) is "you better cannibalize your own products or your competitors will do it for you."