JP Morgan: Tablets To Grow To $35 Billion Market By 2012 (AAPL, MMI)

JP Morgan believes that the tablet market will reach as high as $35 billion by 2012, as it continues to eat away at PC's. The New York-based investment bank believes that competition will drive down premium prices. "We expect tablets to have an increasingly negative impact on PC shipments," analyst Mark Moskowitz said. "More than 35 percent of tablets sold in 2012 will be cannibalistic, particularly as relates to netbooks and notebooks," he said. The bank raised its estimates of 47.8 million units shipped for $26.1 billion in revenue. This is up from 46.1 million units driving $24.9 billion in revenue. It also took 2012 numbers up, going from 78.2 million units to 79.6 million units. 2012 revenue estimates were raised to $35.2 billion from $34.1 billion. The two leaders in this space, at least for now, are Apple AAPL with its iPad, and Motorola Mobility MM with its Xoom.