Apple's tablet will be more than a niche product - report

Posted:
in Future Apple Hardware edited January 2014
A new financial analysis predicts that Apple's yet-to-be-announced tablet will launch in early 2010 and sell about 2 million units in its first year -- and at an estimated $600 each, that would be an additional $1.2 billion in revenue.



The report, from market research firm Piper Jaffray, states that potential revenue from such a device has not yet been included in forecast models for Apple on Wall Street. The firm predicts that the product would increase the company's overall revenue by 3 percent in 2010.



"While at first glance this may appear to address a niche market, we believe the addressable market is larger than that of the Apple TV, of which Apple sold about 1.2m in its first year," the report states.



Piper Jaffray analysts also shared inside information that further suggests that the tablet will launch in early 2010. That reaffirms claims made by AppleInsider's own sources.



"Last week we spoke with an Asian component supplier that has received orders from Apple for a touch-screen device to be fulfilled by late CY09," the report reads. "This data point underscores our thesis that a tablet will likely launch in early CY10."



The firm sees a tablet filling a void between the iPod touch and low-end MacBook. While the product will not be a netbook and will not be marketed as a netbook, Senior Research Analyst Gene Munster believes the product would be geared towards users who want convenient, inexpensive computers for simple tasks like Web browsing and checking e-mail.



We believe an Apple tablet would be priced 30%-50% below the $999 MacBook, and would offer best in class web, email, and media software," the report reads. "In other words, we believe Apple's tablet would compete well in the netbook category even though it would not be a netbook."



Munster also speculates that the device will run a version of the iPhone OS and have access to the App Store. The larger screen could also allow for multitasking, which is not currently available on the iPhone. He believes this is more likely than Apple making OS X "touch friendly."



"Apple could choose to simply run the current App Store apps on the larger device, with enough usable space for multiple apps to run (multi-tasking)," the report states. "Key apps, like Safari and Mail, could be made larger to make use of the larger screen resolution, making Apple's tablet appealing for more extended use, and the company could continue to leverage its primary asset in mobile computing, the App Store, in this scenario. We believe this is the most likely scenario given the success of the multi-touch platform and the App Store ecosystem, which could be accelerated with a tablet device."







While the supposed Apple tablet has been expected for years, in recent weeks the amount of news on the device has reached a fever pitch. Earlier this week, another Wall Street analysis firm, Kaufman Bros., revealed that Apple had investigated screen sizes ranging from 4 inches to 12 inches for its tablet. And last month, a Chinese newspaper reported that Hon Hai Precision Industry Co. could begin assembling tablets as soon as September.
«13456712

Comments

  • Reply 1 of 238
    I want one right now!!!
  • Reply 2 of 238
    galleygalley Posts: 971member
    I agree. It's gonna have some amazing feature(s) that will make everyone want one.
  • Reply 3 of 238
    ronboronbo Posts: 669member
    Quote:
    Originally Posted by AppleInsider View Post


    A new financial analysis predicts that Apple's yet-to-be-announced tablet will launch in early 2010 and sell about 2 million units in its first year -- and at an estimated $600 each, that would be an additional $1.2 billion in revenue.



    I call BS on that price. My 1st gen iPhone cost $600. I really wish these reports would stop trying so hard to set people up for disappointment.
  • Reply 4 of 238
    takeotakeo Posts: 415member
    I'm imagine the real tablet will be a lot thinner than that brick in that mockup.
  • Reply 5 of 238
    "Munster also speculates that the device will run a version of the iPhone OS [...] The larger screen could also allow for multitasking, which is not currently available on the iPhone. He believes this is more likely than Apple making OS X 'touch friendly.'"



    What? Screen size had little to nothing to do with the iPhone OS not allowing multitasking on 3rd party apps -- and, as has been covered here and elsewhere a million times, multitasking is already present in the Mail and SMS apps on the iPhone. It's all about battery life.



    A bigger device can hold a bigger battery, and would also likely be designed for a setting where frequent charging wouldn't be a deal-breaker as it is with a phone (i.e., home/office, where there are presumably lots of outlets, maybe room for a cradle).



    That's why multitasking would be present, not screen size.



    Never mind that the iPhone OS *is* a "touch friendly" version of OS X, so the last part of the quote doesn't make much sense. They could just enable more pieces of OS X on a new device, apropos of whatever it's supposed to do, whether it uses the iPhone UI or not.
  • Reply 6 of 238
    Why would it not be a netbook? Because Apple isn't calling it that.



    If it walks like a duck and quacks like a duck...
  • Reply 7 of 238
    ransonranson Posts: 22member
    I disagree that it would be easier to enhance the iPhone OS than to make OS X more "touch friendly". I have had the opportunity to play around with one of the touch screen ModBooks, and it handles OS X via touch screen with relative ease -- and that's from a third party vendor. Photoshop was even pressure sensitive for tablet drawing. Clearly Piper Jaffray hasn't done all of the homework they can there. I'd put money on this thing running Snow Leopard.
  • Reply 8 of 238
    wizard69wizard69 Posts: 12,501member
    Quote:
    Originally Posted by Ronbo View Post


    I call BS on that price. My 1st gen iPhone cost $600. I really wish these reports would stop trying so hard to set people up for disappointment.



    You don't really believe that that iPhone was worth $600 do you? Not in value to you but in costs and reasonable profits. Even now Apples margins on iPhone are huge.



    The out the door price has a lot to do with marketing. Generally the cost to produce the product has little to do with it's selling price. If we are talking an ARM based device most of the cost in the electronics is in the flash memory with the display likely equalling the Flash memory cost. That depends of course upon how much flash goes into the device and here I'm hoping two different capacity models.



    In any event I'm really hoping this is the type of device that I imagine it to be. I might go for rev A especially if it is supplied with the CPU and GPU power needed in rev A. The only nasty with my iPhone is it's lack of suitable CPU. This tablet simply has to perform a lot better. The new iPhone GS indicates that this shouldn't be a problem. Still the thing better be dual core at the very least.



    I'm actually excited but at the same time I'm hoping it isn't tied to AT&T. I'm also hoping it has just a bit more user I/O ports. SD and USB if you know what I mean.



    Dave
  • Reply 9 of 238
    dfilerdfiler Posts: 3,420member
    Price is the key. Tablets won't be people's primary computer. Instead they will be an auxiliary computer used for specific tasks. With this in mind, price is the key. Tablets will only become popular when they are so cheap that people can buy them on whim. A "why not?" kind of purchase. Otherwise, it will only be the rich that equip themselves with an auxiliary/limited-use computer.



    $600 is close but not quite cheap enough in my book. At that price, most people will continue to use their laptop or desktop. With that said, I would love an Apple tablet. I probably can't justify the purchase of one though, even at the $600 price. My 24" iMac already does everything I need so a tablet would fall into the luxury category for me.
  • Reply 10 of 238
    sipadansipadan Posts: 107member
    They'll sell like hotcakes for sure!!! Or maybe not

    Pricepoint will be sub-800!! Then again it could be higher.. or lower

    At least one thing is certain, they'll make everyone's dream gadget come to life!! Wait, how is that even possible



    Gotta love the analysts
  • Reply 11 of 238
    90% analyst reports are always wrong. So I don't care what this analyst says too. I'll believe Gruber, but not these people.
  • Reply 12 of 238
    dfilerdfiler Posts: 3,420member
    Quote:
    Originally Posted by Sipadan View Post


    They'll sell like hotcakes for sure!!! Or maybe not

    Pricepoint will be sub-800!! Then again it could be higher.. or lower

    At least one thing is certain, they'll make everyone's dream gadget come to life!! Wait, how is that even possible



    Gotta love the analysts



    I'd say the number one gadget with potential now is the Apple TV.



    People are hugely interested in being able to watch anything they want, whenever they want, instantaneously on their home TV, and to do so without any hassle. Given how much people spend on cable TV subscriptions, they would certainly plop down a ton of money of an Apple TV type device that actually delivered on those promises. The software and media licensing deals just aren't there yet though.



    Tablets are appealing because they are rare and have the mystique of being a rare high-tech gadget. As for the masses lusting after them... not so much.
  • Reply 13 of 238
    jupiteronejupiterone Posts: 1,564member
    Quote:
    Originally Posted by ranson View Post


    I'd put money on this thing running Snow Leopard.



    Agreed. I'm hoping for Snow Leopard running on these devices too, but with a custom touch UI.
  • Reply 14 of 238
    Running the iPhone OS on this tablet would be a deal killer for me.



    I really am not interested in a larger version of the iPhone - the iPhone works just fine for what I need.



    However, a 10 inch machine that I could do some email and light word-processing on that would sync easily with my other desktop and laptop - that would be great.



    Hopefully I won't have to create a hackintosh in order to get this.
  • Reply 15 of 238
    Quote:
    Originally Posted by dfiler View Post


    Price is the key. Tablets won't be people's primary computer. Instead they will be an auxiliary computer used for specific tasks. With this in mind, price is the key. Tablets will only become popular when they are so cheap that people can buy them on whim. A "why not?" kind of purchase. Otherwise, it will only be the rich that equip themselves with an auxiliary/limited-use computer.



    $600 is close but not quite cheap enough in my book. At that price, most people will continue to use their laptop or desktop. With that said, I would love an Apple tablet. I probably can't justify the purchase of one though, even at the $600 price. My 24" iMac already does everything I need so a tablet would fall into the luxury category for me.



    How does that 24" iMac fit on the table at the coffee shop? I think your missing something here.
  • Reply 16 of 238
    Quote:
    Originally Posted by Fast Fred 1 View Post


    How does that 24" iMac fit on the table at the coffee shop? I think your missing something here.



    Ha. Never going to happen.
  • Reply 17 of 238
    jwyattjwyatt Posts: 93member
    My thought or perhaps hope is that the tablet is more like the Leander Kahney post: http://cultofmac.com/why-apples-tablet-will-rock/14003



    There are too many "whys" for me in the Piper Jaffray analysis such as:



    Why has this thing been in development for so long if it's basically a large touch ? Using Iphone OS. They could have released that already.



    Why just create a large touch that competes against the ipod touch.



    Why use iphone OS when OSX snow Leopard has so many touch functions beyond what is used

    for current mac laptops ( everyone I think agrees that touch on laptop screens or desktop systems is a little awkward so what are these functions in OSX for ?)



    Why acquire PA Semi for custom chips when new Intel chips for handhelds would probably suffice ?



    Why would SJ put out just a larger touch when there is potential for a whole new class of portable ? Something slightly beyond the capabilities of current handheld products.



    Why would anyone think that Apple will not create something beyond expectations (they've done it over and over again)



    Just thoughts but my hope is that this thing can run ilife and iwork suite of apps, that would be an intriguing product in my mind. Can't wait to see, hopefully it's before next year.
  • Reply 18 of 238
    Quote:
    Originally Posted by Chintan100 View Post


    I want one right now!!!



    You gotta PM Steve Jobs for one..
  • Reply 19 of 238
    brucepbrucep Posts: 2,823member
    the jungle drum beats and getting louder and louder and

    faster and faster .

    the sweat drenched swirling spinning dancers

    circling the ever growing fire

    start to lose all control

    and yet everything speeds up even more

    the jungle drum beats were pounding our chests



    a white coated thick glassed teckstud emerges from the flames



    he cries >>> behold the I-TABLET



    things got really crazy after that
  • Reply 20 of 238
    Quote:
    Originally Posted by Sipadan View Post


    They'll sell like hotcakes for sure!!! Or maybe not

    Pricepoint will be sub-800!! Then again it could be higher.. or lower

    At least one thing is certain, they'll make everyone's dream gadget come to life!! Wait, how is that even possible



    Gotta love the analysts



    +1. As a student, although I am quite rich but I feel that Apple is like a luxury brand. So nothing cheap comes out of them. In my country here, you can buy 2 HTC Touch Diamond2 s with the price of a 32GB 3GS on contract. That shows quality and worth of Apple products.
Sign In or Register to comment.