Money Matters - Simplified

Best Buy’s CEO says his iPad statement was exaggerated

Dunn admitted noticing "shifts in consumption patterns" since the arrival of Apple’s tablet on the market scene, though; said it’s too early to call it market redefining shift.

Best Buy’s CEO Brain Dunn on Friday came out in the open his saying that his statement that Apple’s iPad is cutting into laptops and notebooks is being overly exaggerated by the media as it’s too early to say something like this.

"The reports of the demise of these devices are grossly exaggerated," said Dunn in the press statement.

Earlier this week The Wall Street Journal released a report which quoted Dunn saying that iPad has overshadowed notebooks and laptops sales.

Interestingly, Dunn neither blamed WSJ entirely for the misinterpretation nor did he acknowledged/denied the alleged statement published in the paper directly.

"While they were fueled in part by a comment in the Wall Street Journal that was attributed to me, they are not an accurate depiction of what we're currently seeing. In fact, we see some shifts in consumption patterns, with tablet sales being an incremental opportunity,” added Dunn.

He admitted noticing "shifts in consumption patterns" since the arrival of Apple’s tablet on the market scene, but added that it’s too early to call it market redefining shift.

Netbooks, laptops among holiday favorites?
After WSJ ran the report, market analysts started to debate whether iPad has really taken over the market in such a short span of time and knocked out all its competitors.

"The reports of the demise of these devices are grossly exaggerated," said Dunn in the press statement.

Dunn has tried to subdue the debate by saying that his remarks were over blown.

He also added that as per his company’s recent earnings call, computers will be as much part of the coming holiday season as iPad.

“And as we said during our recent earnings call, we believe computers will remain a very popular gift this holiday because of the very distinct and desirable benefits they offer consumers. That's why we intend to carry a broad selection of computing products and accessories to address the demand we anticipate this season,” concluded Dunn in his statement.

Early to predict fall?
It’s tough to say (now that Dunn has taken a U-turn), how accurate his statement was, but NPD has released a data showing rapid dip in notebook sales since iPad’s launch in April.

As per NPD report, iPad has cannibalized sales of notebooks and laptops but it’s still on a small scale.

"Clearly, the iPad is a great product, but it's way too early to say that it's putting a significant hurt on the PC market. In the future, in 2011, assuming that other tablets appear and the trend [in tablets] continues cannibalization is likely," revealed Stephen Baker, a retail analyst with the NPD Group.