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Tim Cook Calls Tablets the Mother of All Markets

Falling Mac sales were the cause, by a certain level of cannibalization, due to the iPad, but Tim Cook didn't seem too disturbed by the current state of Apple in the PC market.

"If you look at when we came out with the iPad, what did people worry about? They worried, 'Oh my god, you're going to kill the Mac,'" Cook explained. "The cannibalization question raises its head a lot. The truth is: we don't really think about it that much. Our basic belief is: if we don't cannibalize, someone else will."

During the Goldman Sachs Technology and Internet Conference, Apple's CEO had the opportunity to reiterate what he had said last year: the firms having the most to worry about with regard to cannibalization by the iPad are the Windows PC makers, not Apple.

"In the case of iPad particularly, I would argue that the Windows PC market is huge and there's a lot more there to cannibalize than there is of Mac, or of iPad."

As the sales numbers show, the iPad has outsold Mac computers over the past two years, pushing Apple to the top of the PC manufacturers where tablets are concerned.

"If you look at the full year last year, there were more iPads sold than Hewlett-Packard sold of their entire lineup," Tim Cook said. "I think we're in the early part of this game. The projection is that the tablet market will triple in four years."

During the interview, Cook also addressed the question of whether or not Apple has potential for growth. In his opinion, tablet sales will triple in the near future, as the tablet sector is "the mother of all markets", and developing markets represent an enormous opportunity for Apple.

"You would find that over 50% of the people in countries like China and Brazil that were buying an iPad don't own an Apple product," he said. "This is a huge thing for us to go out and show people what Apple is and introduce them to the company."

Each new customer has a potential payoff for Apple, as they tend to come under the influence of the company's "halo effect," which means they are likely to purchase another Apple product in a different category.

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