If it Wasn't Before, the Shift to Tablets is Now Underway (AAPL) (DELL) (HPQ)
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
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It's no surprise that tablets are becoming more and more popular. In the months following the debut of Apple's (Nasdaq: AAPL) iPad, skeptical critics turned into Fanboys, and became bullish on the prospects of the tablet PC.
However, the reality of consumers trading in clunky desktop PCs and heavy notebooks for the devices has not been so evident as in recent weeks.
Tuesday Hewlett-Packard (NYSE: HPQ), a former darling of the PC world, missed earnings estimates for its first quarter and lowered it's outlook for the rest of the year. Additionally, while Dell (Nasdaq: DELL) beat overall consensus views last night, it's sales to consumers slipped 7.5 percent year-over-year.
Jefferies notes 70 million tablet devices -- not just Apple's iPad, but also Motorola's (NYSE: MMI) XOOM, Research In Motion's (Nasdaq: RIMM) PlayBook, and Smasung's Galaxy Tab -- will be sold during the 2011 calendar year. The analyst estimates that number growing to 246 million over the next three years.
Further, as Bloomberg highlighted in a report earlier, Microsoft (Nasdaq: MSFT) Windows sales fell 4.4 percent to $4.45 billion in the quarter, and Intel's (Nasdaq: INTC) chip sales were derived mainly from emerging markets and corporate sales.
While these figures are concerning, most major PC manufacturers already have plans to enter the blossoming tablet market. H-P will release its TouchPad tablet this summer, Intel is taking steps to redesign its chips to consumer less power and adapt well with tablets and Microsoft plans on releasing several versions of Windows, one specifically designed with the tablet in mind.
However, the reality of consumers trading in clunky desktop PCs and heavy notebooks for the devices has not been so evident as in recent weeks.
Tuesday Hewlett-Packard (NYSE: HPQ), a former darling of the PC world, missed earnings estimates for its first quarter and lowered it's outlook for the rest of the year. Additionally, while Dell (Nasdaq: DELL) beat overall consensus views last night, it's sales to consumers slipped 7.5 percent year-over-year.
Jefferies notes 70 million tablet devices -- not just Apple's iPad, but also Motorola's (NYSE: MMI) XOOM, Research In Motion's (Nasdaq: RIMM) PlayBook, and Smasung's Galaxy Tab -- will be sold during the 2011 calendar year. The analyst estimates that number growing to 246 million over the next three years.
Further, as Bloomberg highlighted in a report earlier, Microsoft (Nasdaq: MSFT) Windows sales fell 4.4 percent to $4.45 billion in the quarter, and Intel's (Nasdaq: INTC) chip sales were derived mainly from emerging markets and corporate sales.
While these figures are concerning, most major PC manufacturers already have plans to enter the blossoming tablet market. H-P will release its TouchPad tablet this summer, Intel is taking steps to redesign its chips to consumer less power and adapt well with tablets and Microsoft plans on releasing several versions of Windows, one specifically designed with the tablet in mind.
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