Re: iPad and decline of PC demand.
More broadly, I think that tablets, regardless of which brand you're talking about, have taken market share from smaller laptops and notebook computers because many people do a lot of browsing and simple messaging, rather than word processing, spreadsheets, and more complex activities. In that sense, tablets have eaten up a significant part of the PC market.
But there are new uses for tablets as well. It is becoming common place in many churches for music accompaniment to be stored on tablets and played through large speakers, allowing the congregation to sing along with the accompaniment. Many musicians are using tablets instead of sheet music. These are just examples of new uses for which tablets are ideal and for which PCs in the past have been too big, too heavy, or too power consuming to work as easily as tablets.
On the other hand, my son, a church musician, relies on a MacBook Air (11-inch) because it is hardly bigger than a tablet and allows him to compose music or combine several tracks that he records separately.
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