Apple's 9.7-inch iPad to get boost from increased enterprise tablet adoption in 2013
While many recent reports have focused on Apple's new iPad mini, one market analyst says an uptick in expected enterprise tablet purchases will allow the full-size iPad to continue its domination of the market.
Source: Piper Jaffray
In a note to investors on Monday, Piper Jaffray analyst Gene Munster said a recent survey of 59 chief information officers over 12 different industries points to continued growth for Apple's 9.7-inch iPad, which is reportedly better suited for business operations than the iPad mini.
The investment firm's annual CIO survey suggests that 57 percent of organizations plan to deploy tablets to workers in 2013, compared to 46 percent in 2012. Of the CIOs who said their companies would participate in device rollouts, 15 percent have plans for "broad deployments," almost four times as many as last year's 4 percent. This compares to the 34 percent of respondents who expect to increase investments in PCs.
"We view the greater deployment of tablets as a positive for AAPL given that we believe the iPad has over 60% global tablet share and likely a higher share among enterprises," Munster wrote. "We believe continued growth in enterprise tablet deployment will help drive continued growth in the full sized iPad segment given the larger iPads are better for content creation."
The analyst went on to say that "broad" enterprise deployments are expected to increase rapidly in the next 3-5 years.
Also of note is a decrease in the number of companies that do not have any deployment plans, which fell from 54 percent in 2012 to 42 percent in 2013. Only 5 percent of respondents expected to decrease spending in tablets for the coming year while 20 percent plan to make funding cuts for PCs.
In addition to the increased tablet adoption, the survey found storage and security remain the top two least discretionary items for the year with 64 percent and 63 percent of respondents saying they expect to increase spending in those areas, respectively. Overall, 76 percent of the CIOs polled said they planned to increase spending in 2013, slightly down from 90 percent in 2012.
Piper Jaffray reiterates an overweight rating for AAPL stock, with a target price of $900.
Source: Piper Jaffray
In a note to investors on Monday, Piper Jaffray analyst Gene Munster said a recent survey of 59 chief information officers over 12 different industries points to continued growth for Apple's 9.7-inch iPad, which is reportedly better suited for business operations than the iPad mini.
The investment firm's annual CIO survey suggests that 57 percent of organizations plan to deploy tablets to workers in 2013, compared to 46 percent in 2012. Of the CIOs who said their companies would participate in device rollouts, 15 percent have plans for "broad deployments," almost four times as many as last year's 4 percent. This compares to the 34 percent of respondents who expect to increase investments in PCs.
"We view the greater deployment of tablets as a positive for AAPL given that we believe the iPad has over 60% global tablet share and likely a higher share among enterprises," Munster wrote. "We believe continued growth in enterprise tablet deployment will help drive continued growth in the full sized iPad segment given the larger iPads are better for content creation."
The analyst went on to say that "broad" enterprise deployments are expected to increase rapidly in the next 3-5 years.
Also of note is a decrease in the number of companies that do not have any deployment plans, which fell from 54 percent in 2012 to 42 percent in 2013. Only 5 percent of respondents expected to decrease spending in tablets for the coming year while 20 percent plan to make funding cuts for PCs.
In addition to the increased tablet adoption, the survey found storage and security remain the top two least discretionary items for the year with 64 percent and 63 percent of respondents saying they expect to increase spending in those areas, respectively. Overall, 76 percent of the CIOs polled said they planned to increase spending in 2013, slightly down from 90 percent in 2012.
Piper Jaffray reiterates an overweight rating for AAPL stock, with a target price of $900.
Comments
Sorry to add MicroSoft to this, but for them to compete they will need to sell office for the ipad. MicroSoft said they will offer office for the pad, but knowing them it will be a watered down version and always "to be delivered later this year". lol
Data gathering is, of course, another very useful application.
And then, of course, you have the "all your technical data and repair manuals in one place" application - like the airlines are starting to do to eliminate 40 pounds of paper manuals per flight.
Didn't a lot of people here say the Mini would be better for a lot of businesses because of its portability?
Funny that businesses still gravitate to the full size original.
Of course as soon as the bean counters in the corporation realize that the Mini is less expensive, the 9.7" will be history....
I used my original 9.7" iPad Daily since it was releases. However, I find that my new iPad Mini is just as good at business related tasks as the larger iPads. I do NOT miss the larger iPad in my work or play....
I don't know who said that. I would never have expected the Mini to be preferred in business.
The Mini is bought by people who want extra portability and/or lower cost. Cost is less of an issue with business. If I'm attending a trade show and want to present information to customers, the larger (and better) screen of the 9.7 more than makes up for the greater cost - especially since the trade show probably already cost $10 K or more. And extra portability is a minor issue. The people who are likely to use this are probably used to carrying a laptop and/or other devices and the few ounce difference is insignificant. The larger size more than makes up for the extra weight.
I'd expect the Mini to be used by people as the family's second iPad or as an entry level iPad. Not primarily as a business tool.
Size? It's not size.
The key things for the iPad in _ENTERPRISE_ business has been
1) the difficulty in jailbreaking them and their implicit encrypted and sandboxed data and memory management systems.
2) the ability to do enterprise software distributions
3) the existence of enterprise management software (Enterprise IT can audit the things and quickly isolate those
4) Apple licensing ActiveSync for Exchange
The last 2, replace RIMMs BES, which pretty much locked Blackberries into the enterprise for the last 10 years. The iPad has very little barrier of entry in the field, and I think with the Surface/Win8 device effectively not a Win7 experience, I see Enterprise IT having no better answer than to adopt iPad support for business use.
Quote:
Originally Posted by blackbook
Didn't a lot of people here say the Mini would be better for a lot of businesses because of its portability?
Funny that businesses still gravitate to the full size original.
Give it time.
It's probably taken two years to convince the head duck to allow iPads. Once he/she learns that there is a cheaper version (as someone else noted) then we'll see how the larger iPad fares... but that might take another 2 years.
For one of my companies (I work for multiple), we are adopting tablets this year. The original plan called for iPads with RP. But that was before the launch of Mini and even before the Nexus 7. We have been testing both and found them to meet our needs better than the iPad because of portability. What's funny is that the weight and size of the iPad were not considered a big deal until we had the smaller devices in hand. Suddenly, everyone found the iPad awkward to take from room to room. Users tend to travel between 3 or 4 rooms, checking in/out inventory and running instruments/machinery. We want them to track their activities as well as use of inventory. So, mobility and portability are important.
The choice between Mini and Nexus 7 is not easy. We have engineers in both camps (more for iOS). So what we will likely end up doing is to deploy HTML5 web apps rather than dedicated iOS or Android apps. This has the additional advantage that not all employees will need a tablet. Some of them already have iPhones or Android phones, and can use either to access our HTML5 apps.
Upshot - iPad (2,, 3 or 4) is no longer under consideration.
Originally Posted by blackbook
Funny that businesses still gravitate to the full size original.
Common sense is funny now?
Originally Posted by island hermit
It's probably taken two years to convince the head duck to allow iPads. Once he/she learns that there is a cheaper version (as someone else noted) then we'll see how the larger iPad fares... but that might take another 2 years.
Or five seconds, since they're both visible on the website when the IT department goes to make the company order.
Quote:
Originally Posted by stelligent
For one of my companies (I work for multiple), we are adopting tablets this year. The original plan called for iPads with RP. But that was before the launch of Mini and even before the Nexus 7. We have been testing both and found them to meet our needs better than the iPad because of portability. What's funny is that the weight and size of the iPad were not considered a big deal until we had the smaller devices in hand. Suddenly, everyone found the iPad awkward to take from room to room. Users tend to travel between 3 or 4 rooms, checking in/out inventory and running instruments/machinery. We want them to track their activities as well as use of inventory. So, mobility and portability are important.
The choice between Mini and Nexus 7 is not easy. We have engineers in both camps (more for iOS). So what we will likely end up doing is to deploy HTML5 web apps rather than dedicated iOS or Android apps. This has the additional advantage that not all employees will need a tablet. Some of them already have iPhones or Android phones, and can use either to access our HTML5 apps.
Upshot - iPad (2,, 3 or 4) is no longer under consideration.
It sound like we do some of the same things with a Tablet. We are using ACP Thin Manager clients to display HMI screens for machinery on the iPads. The light weight and size of the Mini makes it a better tablet in my opinion for just about everything. If I can see it fine with my 48 year old eyes it should work for most people...
We also have 20 outside sale people. We are evaluating differnet CRM packages. The Mini is so much more portable, I think it will become the standard in sales....
Quote:
Originally Posted by Carthusia
I suspect that in enterprise, in addition to the display size advantage, the Retina-quality display of the 9.7 iPad has a tremendous advantage over the display of the iPad mini.
I suspect that enterprise doesn't give a crap about Retina. It does nothing to increase the utility of the device. To see how much corporations care about pretty pictures, take a look at the monitors they dish out with user workstations.
Besides, even the non-retina screens look so much better than the average desktop display that I doubt anyone would complain.
It isn't funny it is the way businesses work. You won't see huge corporations buying new hardware on day one of its debut for mass distribution to its employees. It has taken the iPad a relatively long time to achieve its level of adoption relative to the consummer models and even so adoption was comparatively fast for the corporate world. You have to realize that iPad 1 was basically worthless for many corporate uses as it was extremely limited due to memory constraints and a number of software issues. These issues are basically gone in iPad 3 & 4.
I still see iPad 1 as Apples proof of concept machine. It validated the UI with the public on a performance constrained machine. IPad 3 really made the transition to a corporate worthy machine. The extra RAM makes a huge difference in functionality and is far more important to the corporate world than the retina display. IPad Mini might not be a proof of concept machine like iPad 1, but it will take awhile for the corporate world to digest its features. Thus, at best, reports like this one are at best uninformed and demonstrate a lack of understanding of the corporate IT world.
Quote:
Originally Posted by sranger
If I can see it fine with my 48 year old eyes it should work for most people...
The lower resolution of the Mini (compared to iPad 3/4 and Nexus 7) is only an issue in cases where iPhone apps are scaled up directly. Otherwise, it is not much of an issue.
Quote:
Originally Posted by sranger
It sound like we do some of the same things with a Tablet. We are using ACP Thin Manager clients to display HMI screens for machinery on the iPads. The light weight and size of the Mini makes it a better tablet in my opinion for just about everything.
I mostly agree because portability trumps the larger screen. Contrary to some the opinions expounded here, the Mini is quite well suited for enterprise/business apps precisely because portability is a bigger issue than most realize. As mentioned before, we didn't think the iPad was large or heavy until we held the Mini and Nexus7.
I think you will find your expectations are wrong. You really need to look at the large array of people that are employed by today's businesses where the size of a tablet is everything. Effectively the tablet becomes a tool not a marketing device. As such tools are usually scaled for usability. Another way to look at this what the corporate world looked like before the advent of electronics. Back in the day aids like Daytimers and other organizational devices where very common and where effectively Mini notebooks. IPhone has effectively replaced these organizers in many cases but there is still a group that would benefit from a slightly larger device that doesn't become an anchor throughout the day.
I'm talking about today's business. Companies are not likely to start equipping production people or non-customer contact people with iPads any time soon. Who's getting iPads in business today?
- Executives for whom it's a status symbol
- Sales people where the larger iPad is clearly advantageous
- Service people who will store all their technical details on the iPad - and for whom the larger screen is clearly advantageous.
The $70 to go from an iPad Mini to an iPad 2 (or even the $170 to go from the Mini to the iPad 4) is insignificant for those applications. And I say that based on my experience of running multimillion dollar companies.
Some day, tablets might be ubiquitous enough in business that every employee has one - in which case the Mini might find some target audience. But for now, the groups above aren't going to use it.
It isn't the convincing it is in the demonstrating of valid use cases and the devices suitability for those cases. For example the original iPad was useless for many corporate uses due to its inability to handle large PDFs. It even had issues with many web sites. However that doesn't mean that the device wasn't being investigated for many uses in business. It just takes a long time and by the time iPad 3 came out the hardware and software had matured to the point that many points of resistance had faded away.
IPad Mini doesn't suffer from many of those growing pains as the software has already matured and the hardware isn't bad. I can see the adoption curve being quicker for this device. Still you have the reality of budgeting and roll outs in the corporate world so that uptick will take awhile.