An Excerpt taken from AdAge.com, by Beth Snyder Bulik
What a difference a year can make.
At the Consumer Electronics Show in 2010, Microsoft CEO Steve Ballmer showed off a prototype of a Windows-based tablet. This year, more than 80 tablet devices debuted at CES.
And for that we can thank Apple’s iPad. With more than 10 million sold in just nine months, the already iconic touchscreen computer has a 90% awareness among consumers, as well as a robust purchase intent of 21% among the key 18- to 34-year-old demographic, according to a recent survey by Vision Critical. While a majority of consumers in a March version of the study admitted they were “not sure what they’d use it for,” by a November follow-up they had come up with more than half a dozen needs for an iPad, including internet browsing, apps usage, photo and music viewing, social networking and shopping.
And the tablet device has won over consumers fast. A similar 20% purchase intent was noted for the iPod around 2004, said Matt Kleinschmit, senior VP, media, at Vision Critical, but that was more than three years and several versions after the digital music device debuted.
Even more telling of a product in stellar ascent is that it’s also already showing real signs of cannibalizing laptop, netbook and e-reader sales. When Vision Critical asked consumers in March what the device was most similar to, they got more than a dozen responses, from smartphones and laptops to gaming devices and TVs. This time around, that perception remained even or increased for laptops, netbooks and e-readers.
“A year ago, this wasn’t even a category,” Mr. Kleinschmit said. “After months of learning more about the iPad, what’s cut through the clutter is the laptop, netbook and e-reader association — and potential substitution.” He added that the netbook category, while it laid the groundwork for the iPad’s success as a lightweight internet-mostly device, will be subsumed by tablets in only a few years.
NPD Group holiday sales data released today confirmed cannibalization rates it had predicted of as much as 15%, or about 1 million PCs during the holidays, noting that sales of notebooks were down 9% in volume, while netbooks dropped a whopping 38% over last year.
And so the tech industry has responded quickly to the threat with the dozens of tablets now set to flood the market. The hardware makers, however, aren’t alone in feeling the impact of the iPad. Industries from phones, books, magazines, TV, retail and music are all grappling with post-traumatic iPad stress.
“Surely they’ve all learned the lessons of the music industry and know they have to embrace the iPad or end up like them, but do they have the resources and skill sets in place to take advantage of this opportunity?” Mr. Kleinschmit said. He talked about the iPad’s impact in some of those industries, and what companies can do in response.
EFFECTS ON MAGAZINES:
At launch, magazine executives touted the iPad as the industry’s savior. Yet months later, after a few months of spiked sales for magazines’ iPad editions, sales now are mostly flat or dropping. For most magazines, iPad sales represent small percentages of overall revenue, but that will likely change with rapid adoption. Considering consumers’ wide range of intended uses for the iPad, magazines could not only optimize their own content but also experiment with other types just for tablet use. Pricing models could also be flexible compared with a straight per-issue price strategy. “Magazines so far have mostly ported the content from their print [versions] as opposed to digging into what types of content consumers want, and more importantly, what content they are willing to pay for,” Mr. Kleinschmit said.
CLICK HERE TO GO TO CREEL PRINT and your chance to win an APPLE iPad.