Report: iPad Will Take Away From Netbook, Laptop Markets
July 16, 2010
On a day when Apple investors need some good news, I bring you this: Goldman Sachs is cheering the iPad and believes that just like with the iPhone, Apple is poised to take the lions share of profits from the market. The Cupertino-based company will do so by monopolizing a new market and eating into others.
The bank's analysis, as published in the Financial Times is full of pro-iPad data. However, nothing stands out like this:"...the iPad allows the user to “turn on” the device instantly – within 2 seconds – and begin using it immediately. This is in sharp contrast to existing PCs, which typically take 15-60 seconds to resume from a standby or sleep state. We believe this makes the iPad more responsive to a user’s spontaneous needs for information – such as checking the weather, a movie time, or sports scores."On this point, Apple will succeed in taking business away from netbooks and laptops. Goldman Sachs solidified this position when it asked 90 hedge fund CTO's about their tablet implementation plans: A large majority of those surveyed indicated that they would replace between 25 and 50 percent of their laptops with a tablet device. There is no mention as to how the iPad will take away from Apple's own laptop business, but one would expect that to some degree this will happen too. What I found most surprising is this: the iPhone accounts for just 3 percent of the world’s mobile phones, but Apple’s earnings are larger than those of RIM, Motorola, Nokia, HTC and Sony Ericsson combined. Apple knows how to squeeze out all-important earnings, no matter how many devices it sells! I strongly suggest our readers review the entire report located here.
