iPad eating away at netbook sales?

A new report from Morgan Stanley analyst Katy Huberty is showing how Apple’s new iPad is progressively cannibalizing low-cost netbook sales

Sourcing information from both the NPD and Morgan Stanley Research, the report illustrates how Apple’s famed tablet device is effectively eating away at both netbook and iPod Touch markets as consumers continue to show strong demand for the iPad.

Just a year back in Fall 2009, netbooks were seeing around 500-600% year over year growth rates. That number has now dwindled to around 5% for April 2010, stemming from the original large drop at the beginning of this year.

“US consumer PC, and especially notebook, growth decelerated in January when Apple introduced the iPad and again in April when the iPad launched,” Huberty wrote in a note to clients this morning. “Given the corresponding increase in ASPs in the market, we believe much of the demand shortfall came from netbooks and low-cost notebooks. What’s more, US retail netbook unit growth decelerated to about 5 percent YoY in April from 25 percent in March and 53 percent in February, according to NPD.”

In addition to NPD data, Huberty cites information from a Morgan Stanley/Alphawise survey from March which found that 44% of iPad buyers in the US were purchasing it instead of a regular netbook or notebook computer.

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