iPad eating into laptop sales

The head of the nation's largest electronics retailer said Apple's iPad might be consuming as much as half of the laptop market.

Best Buy chief executive Brian Dunn told The Wall Street Journal that internal estimates showed the iPad reducing laptop sales by as much as 50 percent. The retailer reported a 61 percent jump in second-quarter profits this week and plans to feature the iPad and Amazon's Kindle e-book reader this holiday season, a shift away from the chain's traditional emphasis on televisions and desktop computers.

"People are willing to disproportionately spend for these devices because they are becoming so important to their lives," Dunn said. "We are really positioning the company to be the place where people can come and see the best of the connected world."

Elsewhere, Morgan Stanley issued a report showing that U.S. laptop sales fell 4 percent over last year in August, the first time the retail notebook computer market has shrunk. A similar decrease is expected for September.