iPad Shift May Wreak Havoc on Parts of the Tech Sector
Apple sold 3.3 million iPads last quarter. Thats one of the best starts ever for a consumer electronic device. The company led by Steve Jobs could sell 25 million of the electronic tablets next year, based on the trajectory of past consumer hits. While Apple and its suppliers are celebrating, many other companies will suffer. Of course, the games not sewn up nearly every large electronics firm has announced or is rumored to be working on rival devices. But the iPads lead and momentum means it has a big advantage. In tech, one winner usually takes most of the spoils. Reuters wrote up who they thing are going to get hurt if the Apple iPad continues to take off!
Intel and AMD: Likewise, a shift from PCs to the iPad would hurt the two big semiconductor makers. Instead of using a chip whose roots lie in desktop computing where Intel has its stronghold, Apple used one from the cellphone world. Intel may catch up in designing low-power chips, but it could lose its quasi-monopoly style margins if it doesnt. AMD, which chases after Intel yet never catches up, would take a harsher hit.
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