While 2010 has seen the start of the tablet as a multi-million hardware category, 2011 will host the main battle between touchscreen slates and their netbook competition.

Looking at how that could play out, Citigroup reckons 35 million tablets - of which 26 million will be iPads - will be sold, compared to almost 400 million PCs.

In contrast, Craig Berger, at FBR Capital Market, reckons Apple will sell 40 million iPads, with a further 30 million tablets sales coming from the likes of RIM, Asus, Acer and HP.

Crowding out

What's particularly worrying for PC OEMs however is that Berger thinks every five tablets sold will result in the loss of two PC sales.

Citigroup reckons it won't be quite so bad with every seven tablets sold resulting in two PC sales lost. It predicts this will reduce the annual growth in PC sales in 2011 from 12 percent down to 9 percent.

It also demonstrates why PC companies such as HP, Acer and Asus are so keen to get into the tablet market.

[source: Barrons]