JP Morgan sees Apple further eating away at Windows PC market with sub-$1000 iOS notebook

Posted:
in AAPL Investors edited April 2014
Apple is excluding itself from a $63 billion market opportunity, investment firm J.P. Morgan believes, by only partially competing in the sub-$1,000 portable computing market, which is why one analyst argues Apple should introduce a new notebook powered by a more full-featured version of iOS.




Analyst Rod Hall sees Apple adding a keyboard and mouse centric user interface to its iOS platform within the next 12 months, while also keeping the touch friendly functionality of the operating system. This new, more full-featured version of iOS, which he refers to as "iAnywhere," would cannibalize sales of the MacBook Air, but also traditional Windows PCs that thrive in the price range between $500 and $1,000, he said.

In his view, that price range for notebooks and tablets is a $63-billion-per-year opportunity that Apple "barely participates in." Currently Apple has one full-fledged notebook priced under $1,000 -- the entry-level 11.6-inch MacBook Air -- while the entire iPad Air lineup falls in that range.

Hall estimates that even with the dominant iPad, Apple still only accounts for about 20 percent of the portable computing market priced between $500 and $1,000. In contrast, Apple's MacBook Range accounts for about 40 percent of notebooks priced at over $1,000, he said.

Patent
An Apple tablet docking station concept discovered by AppleInsider in 2008.


The analyst believes it's a huge market opportunity for Apple, has about 55 percent of total notebook shipments in 2013 are estimated to come from that price range. That's equivalent to about 100 million of the 180 million total laptops that were shipped last year.

"While some iPad owners are replacing laptops with the device, we believe that most use the iPad as a supplemental device to either a laptop or desktop PC," Hall said. "If iAnywhere allowed these users to flexibly use an iPad as both a PC and a tablet, we believe that many would elect to own simply one device."

This week's estimates, detailed in a research note provided to AppleInsider, are not the first time J.P. Morgan has pushed the idea of a more full-featured version of iOS. The company's prediction of a new, converged operating system existing between OS X and iOS was first revealed in February, when Hall began promoting the "iAnywhere" concept.




In his view, many consumers would be willing to pay a "slight premium" over the cost of a regular iPad to gain more laptop-style functionality. If Apple were to launch iPad keyboard, touchpad or dock, he sees it adding 15 million units to the company's calendar 2015 sales, while "conservatively" adding another $100 to the price of an iPad.

"We calculate that an iAnywhere iPad bundle would run from $774 - $899 vs. a typical lower end laptop (total cost of ownership) of $714," Hall said. "In the past an iPad purchase would likely have been seen as incremental to the cost of a laptop -- with iAnywhere it becomes the same purchase."

J.P. Morgan has maintained an "overweight" rating on AAPL stock with a price target of $585.
«134567

Comments

  • Reply 1 of 134
    andysolandysol Posts: 2,506member

    Someone kill me.  Please

  • Reply 2 of 134
    j1h15233j1h15233 Posts: 274member

    If only iPads existed...

  • Reply 3 of 134
    solipsismxsolipsismx Posts: 19,566member
    Why would they use iOS when they already have Mac OS X with all the components that are needed for a desktop OS? That "full-featured" version of iOS for a notebook [I]is[/I] Mac OS X. I would have given JP Morgan more credit if they said that Apple could leverage future A-series chips by compiling Mac OS X to run on it either as Mac OS X or as a new OS name.
  • Reply 4 of 134
    richlorichlo Posts: 46member
    Macbook Pro, Macbook Air, iPad Air, iPad mini.
    Choose one, niche filled.
  • Reply 5 of 134
    snovasnova Posts: 1,281member

    I'd buy a 12-13" ARM based rMBA.  For extreme horsepower needs I'll use my rMBP 15".  Don't need to lower price of the MBA to get my attention. Happy to trade x86 for ARM and Retina at the current price and battery levels.

  • Reply 6 of 134
    t raget rage Posts: 3member
    Kill me too...
  • Reply 7 of 134
    tallest skiltallest skil Posts: 42,837member

    Intelligent people see JP Morgan as nutcases


  • Reply 8 of 134
    maccherrymaccherry Posts: 924member
    What a stupid piece of research. This is just a trigger to get investors hyped over nothing.
    iPads are killing sales of full fledge pcs!!!!!
  • Reply 9 of 134
    nagrommenagromme Posts: 2,834member
    JP Morgan sees us riding robot dinosaurs to work, too. It all makes sense if you're as smart as they are.

    [I]Quote:
    Originally Posted by snova View Post

    I'd buy a 12-13" ARM based rMBA. For extreme horsepower needs I'll use my rMBP 15". Don't need to lower price of the MBA to get my attention. Happy to trade x86 for ARM and Retina at the current price and battery levels.[/I]


    What apps would you run on it? If iPad apps, then choose your favorite iPad keyboard and go! If OS X apps... you'll need a tidal wave of Mac developers saying they're willing to not merely make another CPU transition (remember how long PPC->Intel took?) but support TWO architectures indefinitely! (On top of ARM iOS if they already have those apps as well.) All that just for this "in-between" unloved hybrid option that few will choose. Not happening any time in the foreseeable future. iOS will keep gaining pro power, but ARM Macs? No.

    I'll stick with a nice Intel retina MBA! And sometimes an iPad keyboard cover.
  • Reply 10 of 134
    robmrobm Posts: 1,068member
    richlo wrote: »
    Macbook Pro, Macbook Air, iPad Air, iPad mini.
    Choose one, niche filled.

    Right there ! Says it all.
    +1
  • Reply 11 of 134
    andysol wrote: »
    Someone kill me.  Please

    Crap. There's already a long line for that. ;)
  • Reply 12 of 134
    bobschlobbobschlob Posts: 1,074member

    JP Morgan would do a great service to it's clients if they would just STFU!

  • Reply 13 of 134
    More anal-ing from anal-ysts.

    Why doesn't Apple bring back the eMate 300 while we're at it?
  • Reply 14 of 134
    cincyteecincytee Posts: 226member
    Quote:


    Analyst Rod Hall sees Apple adding a keyboard and mouse centric user interface to its iOS platform within the next 12 months....


     

    Gee, I thought that was called OS X?

     

    Quote:


    Hall estimates that even with the dominant iPad, Apple still only accounts for about 20 percent of the portable computing market priced between $500 and $1,000. In contrast, Apple's MacBook Range accounts for about 40 percent of notebooks priced at over $1,000, he said.


     

    In other words, "What you want to do, Apple, is stop selling those more profitable machines and concentrate more on cheaper, lower-margin devices. Trust me, it'll be great."

     

    [sigh]

  • Reply 15 of 134
    andysolandysol Posts: 2,506member
    Quote:

    Originally Posted by Suddenly Newton View Post





    Crap. There's already a long line for that. image

    Like an Apple launch :\

  • Reply 16 of 134
    bdkennedy1bdkennedy1 Posts: 1,459member
    Apple has said numerous times it was not going to put a touch screen on a traditional computer.
  • Reply 17 of 134

    errrrr..... doesn't the macbook air start at under 1000--- and it's got OS-X which is as full-featured as you can get. Have these guys even been on the Apple website?

  • Reply 18 of 134
    Q: If this is such a great idea, why isn't Microsoft with its Surface and Windows 8 system capturing the market now?

    A: Maybe, because they don't meet what consumers want.
  • Reply 19 of 134
    peter236peter236 Posts: 254member

    It is Android that is taking market share from Microsoft, not Apple, which is taking a long time deciding when to introduce larger screen smartphones.

  • Reply 20 of 134
    lkrupplkrupp Posts: 5,805member
    Quote:

    Originally Posted by peter236 View Post

     

    It is Android that is taking market share from Microsoft, not Apple, which is taking a long time deciding when to introduce larger screen smartphones.


     

    I don’t like reading stupidity. Blocked.

Sign In or Register to comment.