Conventional wisdom that the decline in personal computer sales is the result of the popularity of the Apple iPad and other tablet devices is not really correct.
Only 14 percent of early iPad adopters (those owning a device for six months or more) stopped using a personal computer, while only 12 percent of those who bought an iPad during the Christmas holiday season did the same, according to research from The NPD Group. The same study found cannibalization of netbooks was down 50 percent among the holiday shoppers.
So why has PC sales growth slowed?
"The explosion of computer sales when Windows 7 launched, as well as the huge increase in netbook sales at that time, are much more to blame for weak consumer PC sales growth than the iPad," said Stephen Baker, vice president of industry analysis at NPD, in a press release. "Overall it appears that the vast majority of iPad purchases to-date have been incremental to the consumer technology industry."
How big an incremental lift have iPads delivered?
According to NPD, the answers are in the billions of dollars. Nearly 75 percent of consumers who bought an iPad for themselves did not plan to buy another device, which according to the research analysis, made all of those purchases incremental.
The iPad market has also brought added sales in accessories. The one disappointing area has been in 3G sales. Most consumers are not looking to purchase a wireless plan to go with their iPad.
"Consumers just do not see the utility in 3G connectivity," said Mr. Baker. "There's an added expense for the device and for the service, something a majority of iPad owners aren't willing to pay. Since most iPads rarely venture away from home, the value of a 3G connection is likely to diminish, especially as other tablets enter the market and pricing starts to fall. When every penny counts, features that aren't core to the user becoming increasingly marginalized as manufacturers fight for every sale."