PEAK iPAD: Slab looking a bit peaky, needs big biz to take more tablets

Sales stall, lack of innovation and absence of Microsoft Office blamed


Sales of Apple iPhones are in rude health - but the Cupertino idiot-tax operation's iPad is sickly and in need of some tender loving biz customers.

This is the diagnosis by Barclays analyst Ben Reitzes, who in a note to investor clients said that, unlike the Jesus mobe, the once super-soaraway fondleslab "clearly has the flu - and a bit too soon". The solution is to make the device much more desirable for businesses, we're told.

The sniffles were apparent in Apple's most recent fiscal Q3 numbers that showed the company sold 2.4 million fewer tabs than in the corresponding quarter in 2012.

Cupertino's chief financial officer Peter Oppenheimer played down the importance of slide by saying that in the year ago period the tech titan unleashed its third-generation iPad which fuelled demand and channel inventory.

The slowdown in Apple slab shipments was also noticed by IDC last week: its second calendar quarter data showed iPad sales had dropped 14.1 per cent on the year-ago quarter globally in a tablet market that grew 59.6 per cent.

Slab sales slowed across the board in Q2 2013, but Apple's four nearest rivals - Samsung, Asus, Lenovo and Acer - all grew at least more than twice the market rate.

The problem has been the lack of major iPad innovation for 18 months, said one Apple channel partner who added that small speed bumps in processors no longer cuts it with consumers.

"Where it hasn't evolved and it needs to is Microsoft Office; the big killer app for the iPad is not there, nor an Office-like replacement from another vendor," our source said.

The Apple tab's email and productivity software remains "rudimentary", said the insider, and needs to be "substantially improved" before the hardware has a better chance at more corporate rollouts.

Reitzes at Barclays also said Apple needed to more aggressively target business customers.

“We are not talking only about PC replacements — we mean innovative thinking around new use cases that can drive sales, collect data for analytics, manage inventory better and lower costs,” he claimed in the note.

“We believe that the ‘new applications’ market for iPads in business could top 100 million units over time — about the size of the corporate PC market – at least $40 billion in size.” ®


Other stories you might like

  • ESA boss gives update on stricken Sentinel-1B imaging satellite: All is not lost yet

    Still borked, 1C and 1D are waiting in the wings

    ESA Director General Josef Aschbacher has addressed the issue of the space agency's borked Copernicus Sentinel-1B spacecraft in his first annual press conference.

    The last useful bit of data from the Earth observation satellite came last year, and as of yesterday attempts to revive the equipment to normal working order have come to naught.

    It's an interesting anomaly: the spacecraft remains under control and, according to Aschbacher, "the thermal control system is properly working and the regular orbit control manoeuvres are routinely performed." However, attempts to reactivate the power unit that's holding back the transmission of image data have proven unsuccessful.

    Continue reading
  • Tesla driver charged with vehicular manslaughter after deadly Autopilot crash

    Prosecution seems to be first of its kind in America

    A Tesla driver has seemingly become the first person in the US to be charged with vehicular manslaughter for a deadly crash in which the vehicle's Autopilot mode was engaged.

    According to the cops, the driver exited a highway in his Tesla Model S, ran a red light, and smashed into a Honda Civic at an intersection in Gardena, Los Angeles County, in late 2019. A man and woman in the second car were killed. The Tesla driver and a passenger survived and were taken to hospital.

    Prosecutors in California charged Kevin George Aziz Riad, 27, in October last year though details of the case are only just emerging, according to AP on Tuesday. Riad, a limousine service driver, is facing two counts of vehicular manslaughter, and is free on bail after pleading not guilty.

    Continue reading
  • AMD returns to smartphone graphics with new Samsung chip for your pocket computer

    We're back in black

    AMD's GPU technology is returning to mobile handsets with Samsung's Exynos 2200 system-on-chip, which was announced on Tuesday.

    The Exynos 2200 processor, fabricated using a 4nm process, has Armv9 CPU cores and the oddly named Xclipse GPU, which is an adaptation of AMD's RDNA 2 mainstream GPU architecture.

    AMD was in the handheld GPU market until 2009, when it sold the Imageon GPU and handheld business for $65m to Qualcomm, which turned the tech into the Adreno GPU for its Snapdragon family. AMD's Imageon processors were used in devices from Motorola, Panasonic, Palm and others making Windows Mobile handsets.

    Continue reading

Biting the hand that feeds IT © 1998–2022