AMD CEO Acknowledges The iPad's Impact On Netbooks
October 15, 2010
Steve Jobs was very straightforward about the iPad being labeled a netbook killer. Since the iPad's launch, most manufacturers and retailers have been somewhat shy about admitting that this is indeed the case. As you may remember, Best Buy's CEO was recently quoted admitting that the iPad "destroyed the netbook market," but following the buzz and under pressure, he had to retract his statement.
AMD is one of the world's largest chipmakers, and their CEO, Dirk Meyer, is probably one of the best people to observe the situation. He went on the record yesterday while talking to investors. Explaining the company's recent losses he was, as Cult of the Mac puts it, "blunt" about the iPad's effect:
"Clearly, in the last quarter or two, the tablet has represented a disruption in the notebook market. If you ask five people in the industry, you’ll get five different answers as to what degree there’s been cannibalization by tablets of either netbooks or notebooks. Given the pretty high price points of the iPad, there’s probably some cannibalization even of mainstream notebooks,”What is the dynamic behind this? Why do people buy netbooks? If it's simply to have a mobile alternative to a desktop computer on the go, buying an iPad makes a lot of sense. Furthermore, the trend in education, of iPads replacing the previously very popular netbooks, is probably killing their sales as well. Will the netbook die? Probably not. But, as the iPad goes mainstream, especially over the upcoming holiday season, the netbook is doomed to become nothing more than a niche product.
