The notebook market is getting absolutely crushed by the introduction of the iPad, says Morgan Stanley analyst Katy Huberty.
In a report from Huberty, picked up by Philip Elmer DeWitt at Fortune, we see notebook sales are now FALLING on a year over year basis. Since the introduction of the iPad, growth had gradually slowed down, but August was the first month that sales went negative.
It’s not just the notebooks that are in trouble, either. Yesterday we noted that Best Buy’s CEO Brian Dun said the iPad cannibalised laptop sales by 50%. Huberty writes in her report, “We expect tablets to continue to pressure PCs as more vendors launch products (e.g., Dell Streak and Samsung Tab) and Apple expands its iPad distribution.”