Apple admits iPad cannibalisation of PC market
Apple has admitted that it owns a low share in both the PC and handset markets, and claims that it is going to release new products in 2011 that will help it take both sectors head-on.
Speaking during the company's financial conference call on Tuesday night (18 January), Tim Cook, chief operating officer (now in charge of the day to day running of Apple after Steve Jobs has taken medical leave) said, "Apple is doing its best work ever, and we’re very happy with the products in the pipeline. We feel very very confident about the future of our company".
"We still have a very low share of a very healthy PC market, so there’s some opportunity there".
Surprisingly, he also admitted that, regardless of its undoubted success, the iPhone is far from the number one smartphone: "We also have a low share of the handsets market", he said. "So we are excited that there is great opportunity there".
"We are in some great markets, some fast moving markets. We have some great products in the pipeline. We feel very very confident".
Cook also believes that the iPad eating into PC sales is good for Apple. "Cannibalisation", as some are calling it, is good for the company all round: "There is some cannibalisation", he said. "But I also think that there is some halo effect from Apple product to Apple product. We brought many people into Apple in Taiwan through the iPhone, and we’re now introducing many more (in Asia) through the iPad. They are buying into the Mac".
"If that’s cannibalisation, then it’s good for us".
"Remember, we have a low share in the PC market, so if the other guys lose a lot more, we have a lot more to gain. The iPad team are building the best iPad for the future and the Mac team are building the best Mac".