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

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]