Apple iPad was expected to take some market-share away from netbooks even before it was released to the market. According to a Morgan Stanley study, things are not looking too good for netbooks. The market has lost a lot of momentum and is not growing as well as it used to. The growth has gone down from 641% in July to only 5% in April. Not a very promising development for netbook manufacturers.

It’s easy to read too much into these studies. The netbook market is becoming more mature. It can not grow as fast as it has been in the past. Besides, a lot of these sales numbers are seasonal. The holiday season has been great for netbooks, and we may be going through a slow time for these devices.

Let’s not underestimate the iPad effect. Many first time netbook buyers find their device to be lacking in many areas. Sure. Unlike an iPad, a netbook is actually a laptop, capable of doing a lot of things. But the iPad can be enhanced with all the apps one can buy for it. Apple is a master in hyping up its device as well. Apple iPad may not be a laptop or replace one (depending on your needs). But it does offer a lot of value to people who may not need a “laptop” but an Internet device. The trends certainly don’t look too good for netbooks, but things can change quickly.