As the personal computer became more like a commodity, consumers were no longer
interested in paying top dollar for a computer unless it was “unique.” Wal-Mart and Best Buy
were selling basic laptop computers for less than $300 in 2010 and intended to maintain this
pricing so long as manufacturers continued to supply low-cost products. PC notebook sales
had been falling during 2010, primarily due to the introduction of Apple’s highly featured iPad
and the consequent rise in “tablet” PC sales. According to Morgan Stanley, Apple’s iPad
cannibalized about 25% of PC notebook sales since its introduction in April through August, 2010.
Dell countered the iPad with a tablet computer called Streak in May 2010, but failed to generate
much enthusiasm or sales for this product.