A new report from market research firm DisplaySearch on Thursday shows that while the iPad shipments are on the rise, netbooks are falling quickly. Shipments of the netbook/tablet PC were down 4 percent in the second quarter of 2010 over the previous quarter and up 29 percent year over year. That actually sounds pretty good until you take a look at the iPad effect.

If you take the iPad shipments out of those numbers, netbooks would have fallen 14 percent in the second quarter and 13 percent year over year. DisplaySearch notes in its report that the iPad effect would have been even greater, but Apple had a hard time filling iPad orders.

The report showed that buyers chose the iPad as a “thin, lightweight device” but ignored the netbook when they wanted more power from their computer. With the falling prices of notebooks, people chose that option instead.

“Looking forward, we expect tablets like the iPad will continue to take market share from mini-notes and the ultraportable segment in regions where PCs have high penetration rates,” wrote DisplaySearch. “The industry consensus is that a successful business model for tablets will center around an a la carte method for selecting the software capabilities (apps) for the device and content consumption (though the ability to create some content will certainly be possible), as opposed to the typical PC market trend that is built upon a Windows operating system and office suite applications for content creation.

That seems to be Apple’s business model for the iPad.