Is the iPad Cannibalizing Other Apple Products?


One of the big questions surrounding the launch of Apple’s iPad was whether the device would cannibalize sales of the company’s other products. Would customers forgo buying a laptop or even an iPod to instead get the iPad? Based on April numbers from market researcher NPD, the answer appears to be that the iPad isn’t taking sales away from Mac computers, and effects on the iPod don’t look like a big problem for Apple, according to PiperJaffray analyst Gene Munster. Mr. Munster points out that sales of Macs were up 39% in April from a year earlier — indicating a “minimal” impact from the iPad. On the other hand, iPod sales were down 17% year over year in April, which could mean that the iPad is “slightly cannibalizing” iPod sales. Analysts hadn’t expected as much of a jump for Macs but had expected iPod sales to be better than they were. But even if consumers who would have purchased an iPod are buying an iPad instead, Mr. Munster says, the higher price of the iPad means this is a positive for Apple.

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Is the iPad Cannibalizing Other Apple Products?