JPMorgan Securities Analyst Mark Moskowitz told Reuters that he expects the tablet market to hit $35 billion market by 2012, cutting into PC sales.

Moskowitz told Reuters: “We expect tablets to have an increasingly negative impact on PC shipments. More than 35 percent of tablets sold in 2012 will be cannibalistic, particularly as relates to netbooks and notebooks.”

Reuters has more from the brokerage house’s outlook report: “JP Morgan raised its 2011 tablet revenue estimates to $26.1 billion from $24.9 billion and 2012 estimates to $35.2 billion from $34.1 billion. It expects 2011 unit shipments of 47.9 million, up from its prior view of 46.1 million. For 2012 it sees unit shipments of 79.6 million, up from its prior view of 78.2 million.”

Much like what happened with eReader, JPMorgan predicts that soaring tablet sales will drive lower prices.