Best Buy CEO says Apple's iPad has halved some notebook sales
Internal estimates at Best Buy suggest the iPad has cut into notebook sales by as much as 50 percent.
The news came as part of a change to Best Buy's retail strategy, according to the Wall Street Journal. Best Buy CEO Brian Dunn announced Tuesday that the iPad will be coming this fall to all 1,093 Best Buy retail stores.
The Richfield, Minn., company reported a 61 percent jump in profit Tuesday, as sales shifted away from big-screen televisions and PCs toward hand-held gadgets and consumer devices. In addition to several accounting changes, increased sales of smartphones and portable computers, especially the iPad, contributed to the surprise profit.
"People are willing to disproportionately spend for these devices because they are becoming so important to their lives," said Dunn.
Earlier this week, Dunn announced he views the iPad as a "magnificent shining light" in the new category of tablets. Dunn estimated that the iPad "had cannibalized sales from laptop PCs by as much as 50%," according to the Journal's report.
This holiday season, Best Buy hopes to capitalize even more on this shift in consumer spending by heavily promoting Apple's iPad and Amazon's Kindle in its stores.
However, Best Buy likely won't be the only major retailer with the iPad this holiday season. Target is rumored to be getting the iPad as early as Oct. 3. In April, a Walmart VP told BusinessWeek that the company expects to carry the iPad by the end of the year.
The news came as part of a change to Best Buy's retail strategy, according to the Wall Street Journal. Best Buy CEO Brian Dunn announced Tuesday that the iPad will be coming this fall to all 1,093 Best Buy retail stores.
The Richfield, Minn., company reported a 61 percent jump in profit Tuesday, as sales shifted away from big-screen televisions and PCs toward hand-held gadgets and consumer devices. In addition to several accounting changes, increased sales of smartphones and portable computers, especially the iPad, contributed to the surprise profit.
"People are willing to disproportionately spend for these devices because they are becoming so important to their lives," said Dunn.
Earlier this week, Dunn announced he views the iPad as a "magnificent shining light" in the new category of tablets. Dunn estimated that the iPad "had cannibalized sales from laptop PCs by as much as 50%," according to the Journal's report.
This holiday season, Best Buy hopes to capitalize even more on this shift in consumer spending by heavily promoting Apple's iPad and Amazon's Kindle in its stores.
However, Best Buy likely won't be the only major retailer with the iPad this holiday season. Target is rumored to be getting the iPad as early as Oct. 3. In April, a Walmart VP told BusinessWeek that the company expects to carry the iPad by the end of the year.
Comments
To be fair, maybe not many people buy notebook at Best Buy?
It doesn't really matter. Unless you want to put forward a theory that people who buy notebooks at Best Buy are particularly susceptible to being wooed by a tablet, as much as half represents a significant defection on the part of this particular segment of buyers-- a segment that surely, at least in some ways, is representative of buyers in general.
That just shows that people were previously buying something more complicated than they really needed. This is a good thing, it means people are saving money, getting something closer to their needs. Or from a whole-of-society perspective, things just got more efficient.
Otherwise I'd maybe agree, but saving money? With an iPad vs. Netbook?
If we talk about a trasition to tablets in general. Maybe, when competing and cheaper tablets come into play. Majority will likely buy cheaper comparable tablets, which fill their needs well enough (people tend to be cheap in general). Kind of like Macbooks vs. other notebooks.
Regs, Jarkko
Maybe, when competing and cheaper tablets come into play. Majority will likely buy cheaper comparable tablets, which fill their needs well enough (people tend to be cheap in general).
The long term effect of netbooks may have been to teach the "Good enough" crowd the difference between "Product can do this." and "Product can do this well enough that it is worth the effort of trying." If that is the case then cheep knockoff tablets will continue to do badly in the market as they did before the iPad.
That just shows that people were previously buying something more complicated than they really needed. This is a good thing, it means people are saving money, getting something closer to their needs. Or from a whole-of-society perspective, things just got more efficient.
Or maybe people are just getting dumber.
As for OS X, most people new to Mac are completely flummoxed by it. Thanks to iOS, simple is the new black. And anything else, too much bang and whiz.
I would wager most people that use Windows probably just do it for downloads, Facebook and Office.
In all seriousness, there are major shifts in computing and media/internet consumption underway.
As for OS X, most people new to Mac are completely flummoxed by it.
How can anyone by flummoxed by an OS many magnitudes simpler than MS Windoze, what hope is there.
Can someone tell me what is difficult about OS X?
I was new to it in May 2005 and yet to read any manual or guide, but could work it within hours!!
In OS X there are generally more than one way to complete a task so you can work the way that feels comfortable to you. For example, to copy some text from a webpage to a Word document, you could do the windows method of copy and paste, or you can select and drag / drop (if the app is currently in the background, hover over the app in the dock and it will spring to the foreground).
You do however have a point, that comparing working with iOS on an iPad and Windows (a desktop based OS) on a netbook, it becomes clear that iOS is optimised for mobile devices.
I've used both a netbook and an iPad, and for me, the biggest advantage of the iPad was simple navigation between apps and the overall speed of the device. Having a low powered netbook running a desktop class OS, is so stupid and clumsy. It is too demanding on the processor, which gets hot, and then needs additional power to cool. You end up with massive batteries just to get reasonable operating times, whereas the lightweight iOS doesn't heavily load the processor, which remains cool without requiring power hungry cooling!
It will be interesting to see what the upcoming competition to the iPad will be like to use. I suspect that by the time they come up with something that matched the current iPad, the 3rd generation iPad will knock them away again!!
Phil
Otherwise I'd maybe agree, but saving money? With an iPad vs. Netbook?
If we talk about a trasition to tablets in general. Maybe, when competing and cheaper tablets come into play. Majority will likely buy cheaper comparable tablets, which fill their needs well enough (people tend to be cheap in general). Kind of like Macbooks vs. other notebooks.
Regs, Jarkko
I believe saving money could be relative, depending on the variables.
For example WHY you buy a Mac, if for any Mac there is a cheeper Window PC.
Just to be clear - the article says notebook - not netbook. Some of he comments here infer that he said netbook.
The article is also ambiguous. It implies that notebook sales have dropped by 50% overall. However, I suspect he is talking about some specific models. If Best Buy's notebook sales have dropped off 50%, they are in deep trouble.
Otherwise I'd maybe agree, but saving money? With an iPad vs. Netbook?
If we talk about a trasition to tablets in general. Maybe, when competing and cheaper tablets come into play. Majority will likely buy cheaper comparable tablets, which fill their needs well enough (people tend to be cheap in general). Kind of like Macbooks vs. other notebooks.
Regs, Jarkko
Forgetting about the fact that Mac sales are soaring, which of the impending iPad clones are significantly cheaper (than the iPad)?
All them Android tablets makers will be at the bottom selling the same sh** as the next guy.
How can anyone by flummoxed by an OS many magnitudes simpler than MS Windoze, what hope is there.
Can someone tell me what is difficult about OS X?
I was new to it in May 2005 and yet to read any manual or guide, but could work it within hours!!
In OS X there are generally more than one way to complete a task so you can work the way that feels comfortable to you. For example, to copy some text from a webpage to a Word document, you could do the windows method of copy and paste, or you can select and drag / drop (if the app is currently in the background, hover over the app in the dock and it will spring to the foreground).
You do however have a point, that comparing working with iOS on an iPad and Windows (a desktop based OS) on a netbook, it becomes clear that iOS is optimised for mobile devices.
I've used both a netbook and an iPad, and for me, the biggest advantage of the iPad was simple navigation between apps and the overall speed of the device. Having a low powered netbook running a desktop class OS, is so stupid and clumsy. It is too demanding on the processor, which gets hot, and then needs additional power to cool. You end up with massive batteries just to get reasonable operating times, whereas the lightweight iOS doesn't heavily load the processor, which remains cool without requiring power hungry cooling!
It will be interesting to see what the upcoming competition to the iPad will be like to use. I suspect that by the time they come up with something that matched the current iPad, the 3rd generation iPad will knock them away again!!
Phil
Short answer: I work for Best Buy, and the reason is simple. People are familiar with Windows, have been using it since the days of Windows 95, and have a fear of switching. People don't want to know there is something better, especially when the price tag is at least twice as much as the other computer they see.
Disclaimer: These views are solely my opinion, and in no way reflect the opinions or views of Best Buy, its constituents, or its shareholders.
How can anyone by flummoxed by an OS many magnitudes simpler than MS Windoze, what hope is there.
Can someone tell me what is difficult about OS X?
It's not that it's difficult, it's that it's different. I have several friends who have switched, and they love their Macs. But would sometimes make comments about how they have to relearn things. Similarly, driving on the left side of the road is no more difficult than driving on the right. But if you have 20 years of experience and muscle memory to overcome, it can be a bit scary at first.
All them Android tablets makers will be at the bottom selling the same sh** as the next guy.
Substitute "windows laptop" for "Android tablets" and you've described the computer market as it has existed for years.
I have an iPad and an HP netbook. There's no compelling reason to buy a netbook right now because all the netbooks on the market are pretty much the same product that they've been for two years. The new HP netbooks have exactly the same specs and features as my two year old one. Just the fact that the iPad is something that's actually new is going to give it a sales advantage.
so true. i think these companies holding back on new netbooks are just plain stupid. i will take a modern netbook right now over an ipad but not one of these old model netbooks. not saying that as the ipad is 'bad' just that it doesn't do quite enough and i would like a small device like a netbook with the latest processor in it and better battery life.