Wednesday, November 9, 2011

Progression of Ipad has Depressed the Market for Netbook Computers

Analysts expect used apple iPads to continue to compete very well against existing low-end notebooks and netbooks, particularly in the segment of the market where surfing, reading, game playing and emailing dominate the usage model. The iPad will continue to depress the market for netbooks and cheap notebooks that were the fastest growing segment of the computer market. The iPad Apple machine combines the best features of smart phones and laptops and is presented as the perfect combination smart phone and a laptop.

The economic model here can be looked at using the substitution effect and income effect. In the technology sector of industry a company must be very innovative to stay on top of their market niche. Netbooks and Notebooks saw a surge in demand in 2008 and 2009 due to the economic recession. Price was a key element in all consumers’ behavior and it basically served the purpose of a low end PC. Notebooks filled a gap in the market to users that needed more than a smart phone but did not have the income to invest in a very advanced personal computer. Notebooks are still looked at as a secondary machine for surfing, reading, game playing and emailing. They are not utilized in companies as a basic tool for a job.

The iPad is quickly stealing market share in this niche because there is a strong demand for personal tablet computing devices. It falls perfectly in the niche between a smart phone and a personal computer. The main reason the iPad is successful is because it is a portable device all about consuming media rather than creating it. We will also continue to see many more advancements with mobile technology. Companies need to position their internet marketing strategies appropriately to not only compete on the search levels, but the social, local and mobile levels that will also continue to grow even larger in the coming years.