Apple (AAPL) is Killing Microsoft (MSFT) in This Key Segment
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Price: $440.67 -0.51%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
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Apple (Nasdaq: AAPL) is more than just a consumer electronics company...its now becoming a business electronics company.
According to reports Wednesday, Apple is making its way into the enterprise computing market -- something which should make holders of Microsoft (Nasdaq: MSFT) nervous. The culprit: Apple's iPad tablet device.
IDG Connect recently performed a survey of business managers in different markets, and found 51 percent of those surveyed "always" use the device at work while 40 percent said they "sometimes" do. Additionally, IDG said 79 percent of respondents use the iPad outside the office.
The biggest markets for Apple are financial services and pharmaceuticals. According to one respondent from Veeva Systems, they haven't seen one pharma roll-out anything besides an iPad. Some analysts expect shipments of the iPad for commercial markets alone to increase from 38.3 million this year to 52.6 million in 2013, a 37 percent jump.
Many corporations still use the 'Wintel' set-up: a combination of Microsoft and Intel (Nasdaq: INTC) products. However, recent data from Gartner suggests Microsoft PC shipments fell 5.9 percent last quarter while Macs saw a 21 percent sales increase. Apple reported moving 3.8 million Macs last quarter, about 3 percent of the total market. Should Apple be able to bring that number up to 18 million units per year -- akin to that of number 3 global PC shipper Lenovo -- then an additional $23 billion could be added to Apple's top-line numbers, or about $25 per share.
Keep in mind, that's only an 18 percent increase in shipments based on last quarter's number, meaning the target could be reached by the end of 2012 or early into 2013 at the latest.
Despite the outlook for the iPad, some are still looking for a piece of the commercial -- and overall tablet -- pie. Microsoft is going to launch Windows 8 by the end of 2012, expected to be more "tablet friendly" than Windows 7. Also looking to strike is Google (Nasdaq: GOOG), which will be in a key position should the Motorola Mobility (NYSE: MMI) acquisition get antitrust clearance. Other OEMs like Samsung and Research In Motion (Nasdaq: RIMM) are looking to refine their offerings as well.
But Apple is also about to do a hardware refresh with its new iPad 3. Though specific details haven't been released, one thing about the new iPad is for sure: the unit will lower the price of current iPad models, making them even more accessible.
Though Apple is trading at all-time highs, sentiment is suggesting there is plenty of growth still left in the stock.
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According to reports Wednesday, Apple is making its way into the enterprise computing market -- something which should make holders of Microsoft (Nasdaq: MSFT) nervous. The culprit: Apple's iPad tablet device.
IDG Connect recently performed a survey of business managers in different markets, and found 51 percent of those surveyed "always" use the device at work while 40 percent said they "sometimes" do. Additionally, IDG said 79 percent of respondents use the iPad outside the office.
The biggest markets for Apple are financial services and pharmaceuticals. According to one respondent from Veeva Systems, they haven't seen one pharma roll-out anything besides an iPad. Some analysts expect shipments of the iPad for commercial markets alone to increase from 38.3 million this year to 52.6 million in 2013, a 37 percent jump.
Many corporations still use the 'Wintel' set-up: a combination of Microsoft and Intel (Nasdaq: INTC) products. However, recent data from Gartner suggests Microsoft PC shipments fell 5.9 percent last quarter while Macs saw a 21 percent sales increase. Apple reported moving 3.8 million Macs last quarter, about 3 percent of the total market. Should Apple be able to bring that number up to 18 million units per year -- akin to that of number 3 global PC shipper Lenovo -- then an additional $23 billion could be added to Apple's top-line numbers, or about $25 per share.
Keep in mind, that's only an 18 percent increase in shipments based on last quarter's number, meaning the target could be reached by the end of 2012 or early into 2013 at the latest.
Despite the outlook for the iPad, some are still looking for a piece of the commercial -- and overall tablet -- pie. Microsoft is going to launch Windows 8 by the end of 2012, expected to be more "tablet friendly" than Windows 7. Also looking to strike is Google (Nasdaq: GOOG), which will be in a key position should the Motorola Mobility (NYSE: MMI) acquisition get antitrust clearance. Other OEMs like Samsung and Research In Motion (Nasdaq: RIMM) are looking to refine their offerings as well.
But Apple is also about to do a hardware refresh with its new iPad 3. Though specific details haven't been released, one thing about the new iPad is for sure: the unit will lower the price of current iPad models, making them even more accessible.
Though Apple is trading at all-time highs, sentiment is suggesting there is plenty of growth still left in the stock.
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