Report: iPad Crushes Netbook Sales

CUPERTINO, Calif. — A recent report by Morgan Stanley reveals that growth in the netbook industry has tumbled since the beginning of the year.

According to Fortune.com, the report attributes the slowdown to Apple’s iPad, which garnered tremendous publicity before and after it hit the market.

The analyst who conducted the report cited data from March showing that 44 percent of surveyed consumers who were planning to purchase an iPad were doing so instead of purchasing a notebook or netbook computer, the largest category of cannibalized products.

Notably, over half of those customers were planning to purchase an iPad instead of an Apple notebook, with the remainder forgoing a non-Apple netbook or notebook.

Also of note, according to the report, a full 41 percent of those surveyed said that they would be purchasing their iPad instead of an iPod touch, suggesting that Apple may take a hit to that portion of its sales going forward. Though the news isn't as bad as it appears, Apple will undoubtedly be happy to keep those customers in the Apple fold and "upselling" them to the more expensive iPad.

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