Analyst: 64-bit iPad Spells Bad News for PC Market

| Apple Stock Watch

The overall PC market is declining, and it's about to get even worse if Apple introduces a 64-bit version of the iPad. Deutsche Bank Equity Research analyst Chris Whitmore sees the 64-bit iPad as a strong draw in the enterprise market and as a way for Apple to gain a stronger foothold in the corporate world.

64-bit iPad could take more of the PC market64-bit iPad could take more of the PC market

Apple hasn't introduced a 64-bit iPad yet, but that could be coming soon. The company is expected to unveil new models some time this month, and since the just launched iPhone 5s includes a 64-bit A7 processor, it's possible the new iPad will get the same chip.

"We expect growing [desktop] virtualization and iPad deployments in the enterprise to pressure corporate PC sales through 2014-15," Mr. Whitmore said. "We expect Apple's iPad refresh to include 64 bit architecture, which should enable a greater array of enterprise App development and facilitate greater enterprise penetration over time."

To compete against the iPad and the overall tablet market, Mr. Whitmore expects PC makers will drop prices on ultrabooks -- the low cost mini laptops that often sacrifice features, quality, and performance to hit an affordable price point. That price will likely fall below the US$500 mark to match the tablet market, and according to Mr. Whitmore, will help compete against tablets in the near future.

Despite PC maker's efforts, the market will still continue to decline. Sales are expected to drop 10 percent year-over-year in 2013, and 8 percent in 2014. Those losses are all gains in the tablet market since that's where sales are shifting.

Apple is currently trading at $484.63, down 3.13 (0.64%).

[Thanks to CNET for the heads up]

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11 Comments Leave Your Own

Celia van der Woodsen

This is the lamest article I read today. Ipads are just for entertainment and not for work or the enterprise market. There are a big numbers of corporations are finding about the limitations of using a tablet. Hybrids products like the surface pro are the new computer of tomorrow. This is not journalism but misinformation. Lame!

gnasher729

Celia, the hardware on an iPhone 5s runs at about the same speed as a 2009 MacBook, faster than any so-called netbook, faster than any current Intel Atom processor, and faster than any cheap laptop. On an iPad, with much more space to dissipate heat, it will run faster again. You can of course get laptops that are faster, even significantly faster, but they cost real money.

Jeff Gamet

Celia, while you may not see a need for the iPad beyond gaming—and it is a great gaming platform—there are plenty of people that do use theirs as productive business tools. I routinely write and edit articles on mine, manipulate images and audio, and connect to and manage remote servers. With virtualization apps as well as remote connect apps, iPads are serving as gateways into corporate networks and apps instead of PCs for many companies. And gnasher769 is spot on: the iPhone 5s has more horsepower than many recent laptops.

daemon

Jeff,

Is the reason why you don’t bother fact checking your articles because you write them on your iPad?

Ultrabooks are not low cost mini laptops. Those are called “netbooks”.

webjprgm

Netbooks are smaller form factor, limited laptops. Ultrabooks were originally conceived to be the same size as a normal laptop and be more-or-less full featured but just be thinner so as to be light weight.

I can easily imagine PC makers producing what they call “Ultrabooks” with very cheap components similar to a Netbook, just in a different shape.

RonMacGuy

Hi Celia, so what is your title at Microsoft?  LOL.

“There are a big numbers of corporations are finding about the limitations of using a tablet. Hybrids products like the surface pro are the new computer of tomorrow.”

Really?  So a tablet like the iPad has limitations, but take a surface pro tablet and stick a ‘hybrid’ keyboard on it (just like one of a thousand third party keyboards available for the iPad) and a kickstand and now you’ve got something?!?!?  Really?

So please Celia, point us to ANY current article on the web that references the limitations that ‘a big number of corporations are finding’.  I Yahoo’d “corporations finding limitations with ipad” and got like basically no news hits.  I REALLY hate when trolls make stuff up.  Please give us an example of these so-called limitations and who the ‘big number’ of corporations are.  Please!!

Celia, why don’t you go watch some videos here and actually learn something…

www.apple.com/ipad/business/profiles/

This shows where companies across dozens of industries are using iPads successfully.  Automotive.  Healthcare.  Engineering.  Construction.  Manufacturing.  Pharmaceutical.  Food and beverage.  Media.  Airline.  Real Estate.  Apparel.  Architecture.  Farming.  Legal.  Banking.  Small Business.  And on and on.

The only thing truly lame about this article is your posting to it, both in information as well as grammar.  Talk about misinformation.

Have a great day working in the Microsoft store trying to sell surface garbage.

grin

RonMacGuy

daemon, netbook prices have always been below $500, and usually have been in the $300-$400 range.  I think this Whitmore person really did mean to say ultrabook instead of netbook.  The netbook market has basically been dead since the launch of the iPad, and continued tablet market growth is eating into ultrabook sales now probably.  I do agree with you that Whitmore should not have said “the low cost mini laptops that often sacrifice features, quality, and performance to hit an affordable price point” about ultrabooks.

I remember how the netbook market was going to have iPad for lunch when the iPad was first released.  “Who would buy a tablet without a keyboard?”  “My netbook does so much more than the stupid iPad.  No one is going to buy an iPad for $500 when you can get a netbook for $300 that does more.”  Boy, were people SO wrong!!

Lee Dronick

Always check the date that someone joined and how many posts they have made before feeding them.

gnasher729

daemon, Jeff didn’t mention any “ultrabooks” in his post. Current laptops fall into four categories:

1. Netbooks with cheap and slow processors.
2. Big cheap clunkers with cheap and slow processors.
3. Powerful laptops with powerful processors (similar to MacBook Pro)
4. Ultrabooks with reasonably powerful processors (similar to MacBook Air).

Categories 1 + 2 are the huge majority of Windows laptops sold. And an iPhone 5s and even more a future iPad with 64 bit processor can beat them in performance.

RonMacGuy

I know, Lee.  And I’m the one who usually tells others here not to feed the trolls.  But I just couldn’t help myself today!!

Lee Dronick

It can be tough to ignore them

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