The surprising performance of Intel (NASDAQ:INTC) in the last quarter generated questions as to the reliability of projections tablets will eat deeply into PC sales going forward.
UBS (NYSE:UBS) analyst Uche Orji concluded that “more than 50% of PC sales are now from emerging markets, making it inherently more difficult to track; desktops are performing better than expected, and with 1/3 of PCs in emerging markets built by white box makers, market data estimates don’t capture it all; ASPs were better than expected as Sandy Bridge drove a richer mix; Foxconn, Pegatron and Samsung are tracking better than the reporting Taiwanese ODMs we track.”
Numerous analysts weighed in on the story, and all of them had their own bullish or bearish takes; in many cases directly contradicting the arguments of their counterparts.
Normally that means the market is clueless as to what is the state of a particular situation, and it'll only be revealed over time.
The tablet, PC story has yet to play out as to its actual effects on Intel and other companies.
Intel was trading at $21.15, gaining $1.29, or 6.50 percent, as of 1:45 PM EDT.
Showing posts with label Tablets. Show all posts
Showing posts with label Tablets. Show all posts
Wednesday, April 20, 2011
Thursday, April 14, 2011
Intel (INTC) (DELL) (HPQ) Pressured on PC Slowdown
The slowdown in PC sales has arrived sooner than expected, pushing the share price of Intel (NASDAQ:INTC), Dell (NASDAQ:DELL) and Hewlett-Packard (NYSE:HPQ) down on the day.
Intel was downgraded by Roth Capital to "Neutral," citing slow progress with tablets and smartphones, along with PC sales slowing down.
Reports from IDC and Gartner saying that PC sales unexpectedly dropped was another pressure on the sector, although in this case it probably wasn't from increased tablet sales, but economic concerns.
Hewlett-Packard was trading at $40.17, falling $0.96, or 2.33 percent, as of 1:56 PM EDT. Dell was trading at $14.90, dropping $0.52, or 3.34 percent. Intel was at $19.48, down $0.30, or 1.52 percent.
Intel was downgraded by Roth Capital to "Neutral," citing slow progress with tablets and smartphones, along with PC sales slowing down.
Reports from IDC and Gartner saying that PC sales unexpectedly dropped was another pressure on the sector, although in this case it probably wasn't from increased tablet sales, but economic concerns.
Hewlett-Packard was trading at $40.17, falling $0.96, or 2.33 percent, as of 1:56 PM EDT. Dell was trading at $14.90, dropping $0.52, or 3.34 percent. Intel was at $19.48, down $0.30, or 1.52 percent.
Tuesday, April 12, 2011
Intel (INTC) Launching Tablet Chips
With PC sales slowing, Intel Corp (NASDAQ:INTC) is targeting the fast-growing tablet market with a new set of chips in hopes of garnering some market share in the segment.
According to Mark Miller, director of outbound marketing for Intel's netbook and tablet group, once battery life in tablets expand, that will lead to focus on computer performance, which "plays much more to Intel's strengths."
The latest chips are named Oak Trail, which while helping Intel by having something decent in the space, the company still faces a major battle against ARM Holdings (NASDAQ:ARMH), which has licensed its technology to fiercely competitive powerhouses like Qualcomm Inc. (NASDAQ:QCOM), Nvidia Corp. (NASDAQ:NVDA) and Texas Instruments (NYSE:TXN).
Intel closed Monday at $20.12, gaining $0.10, or 0.50 percent.
According to Mark Miller, director of outbound marketing for Intel's netbook and tablet group, once battery life in tablets expand, that will lead to focus on computer performance, which "plays much more to Intel's strengths."
The latest chips are named Oak Trail, which while helping Intel by having something decent in the space, the company still faces a major battle against ARM Holdings (NASDAQ:ARMH), which has licensed its technology to fiercely competitive powerhouses like Qualcomm Inc. (NASDAQ:QCOM), Nvidia Corp. (NASDAQ:NVDA) and Texas Instruments (NYSE:TXN).
Intel closed Monday at $20.12, gaining $0.10, or 0.50 percent.
Tuesday, April 5, 2011
Dell (DELL) Sitting it Out Until Late 2012 Says Cowen
Dell (NASDAQ:DELL) computer will be doing little over the next year-in-a-half in the opinion of Cowen & Co. analyst Matthew Hoffman, who sees the company sitting it out until Windows 8 arrives in 2012.
Dell is more than likely to linger on the sidelines Hoffman thinks, until late 2012 when Microsoft’s (NASDAQ:MSFT) Windows 8 is released.
The consequences will be that Dell will maintain a 14 percent share of the global PC market, but that's market that’s growing smaller, meaning Dell’s PC revenue, which is 50 percent of overall sales, will drop 1 percent annually, compounded, in 2012 and 2013.
Concerning the tablet market, which is pressuring Dell, Hoffman said this:
"We are increasing calendar ’11 tablet revenue to $32B (from $31B); cutting calendar ’11 PC units to 356MM (just +1% y/y) from 399MM (+11% y/y); cutting calendar ’11 PC revenue to $237B (+0% y/y) from $255B (+6% y/y); increasing calendar ’12 tablet units to 91MM (+77% y/y) from 82MM (+59% y/y) units; and increasing calendar ’12 tablet revenue to $58B (+81% y/y) from $44B (+42%) previously."
Dell was trading at $14.45, up $0.20, or 1.40 percent, as of 2:47 PM EDT. Hoffman has a "Neutral" rating on the computer company.
Dell is more than likely to linger on the sidelines Hoffman thinks, until late 2012 when Microsoft’s (NASDAQ:MSFT) Windows 8 is released.
The consequences will be that Dell will maintain a 14 percent share of the global PC market, but that's market that’s growing smaller, meaning Dell’s PC revenue, which is 50 percent of overall sales, will drop 1 percent annually, compounded, in 2012 and 2013.
Concerning the tablet market, which is pressuring Dell, Hoffman said this:
"We are increasing calendar ’11 tablet revenue to $32B (from $31B); cutting calendar ’11 PC units to 356MM (just +1% y/y) from 399MM (+11% y/y); cutting calendar ’11 PC revenue to $237B (+0% y/y) from $255B (+6% y/y); increasing calendar ’12 tablet units to 91MM (+77% y/y) from 82MM (+59% y/y) units; and increasing calendar ’12 tablet revenue to $58B (+81% y/y) from $44B (+42%) previously."
Dell was trading at $14.45, up $0.20, or 1.40 percent, as of 2:47 PM EDT. Hoffman has a "Neutral" rating on the computer company.
Friday, April 1, 2011
Micron Technology (MU) Looks Strong on DRAM Prices
Saying it appears the fallout from the earthquake in Japan in the chip industry will continue to put upward pressure on DRMA chip prices, which should benefit Micron, Sterne Agee chip analyst Vijay Rakesh said he's maintaining a "Buy" rating on the company.
DRAM spot prices are already up 5 percent to 7 percent in the quarter and could go higher, says Rakesh.
Some manufacturers such as Rexchip and Powerchip could find their supply of wafers shrinking dramatically, as “Japanese OEMs are cutting out some of these arrangements,” which under normal conditions had been supplied up front by the companies, with payment coming after DRAM production.
With smartphone and tablet sales continuing to soar, that is another factor which could have a strong impact on the supply of wafers.
Micron closed Thursday at $11.47, falling $0.11, or 0.95 percent.
DRAM spot prices are already up 5 percent to 7 percent in the quarter and could go higher, says Rakesh.
Some manufacturers such as Rexchip and Powerchip could find their supply of wafers shrinking dramatically, as “Japanese OEMs are cutting out some of these arrangements,” which under normal conditions had been supplied up front by the companies, with payment coming after DRAM production.
With smartphone and tablet sales continuing to soar, that is another factor which could have a strong impact on the supply of wafers.
Micron closed Thursday at $11.47, falling $0.11, or 0.95 percent.
Wednesday, March 30, 2011
Microsoft (MSFT) Says Tablets May Not Have Future
Even though Microsoft (NASDAQ:MSFT) is developing a version of Windows 7 for tablets, Craig Mundie, Microsoft’s chief research and strategy officer, says he doesn't see much of a future for the devices.
“I think there’s an important distinction–and frankly one we didn’t jump on at Microsoft fast enough–between mobile and portable,” he said. “Mobile is something that you want to use while you’re moving, and portable is something that you move and then use. These are going to bump into one another a little bit and so today you can see tablets and pads and other things that are starting to live in the space in between. Personally I don’t know whether that space will be a persistent one or not.”
There is no doubt in the short-term tablets are and will be a hit, but once the initial newness wears off it'll be at that time we'll know whether or not Mundie is right.
As for the Microsoft tablet platform, it won't be released until the fall of 2012, suggesting they think it'll be around at least for awhile.
Microsoft was trading at $25.66, gaining $0.17, or 0.67 percent, as of 2:42 PM EDT.
“I think there’s an important distinction–and frankly one we didn’t jump on at Microsoft fast enough–between mobile and portable,” he said. “Mobile is something that you want to use while you’re moving, and portable is something that you move and then use. These are going to bump into one another a little bit and so today you can see tablets and pads and other things that are starting to live in the space in between. Personally I don’t know whether that space will be a persistent one or not.”
There is no doubt in the short-term tablets are and will be a hit, but once the initial newness wears off it'll be at that time we'll know whether or not Mundie is right.
As for the Microsoft tablet platform, it won't be released until the fall of 2012, suggesting they think it'll be around at least for awhile.
Microsoft was trading at $25.66, gaining $0.17, or 0.67 percent, as of 2:42 PM EDT.
Nvidia (NVDA) Faces Challenges from PC Slowdown Says ThinkEquity
Shares of Nvidia (NASDAQ:NVDA) are under pressure today on the warning from ThinkEquity analyst Krishna Shankar that the company will probably be hurt by declining PC consumer demand.
Although Shankar acknowledges strong growth for Nvidia in the smartphone and tablets market, it apparently won't be enough to offset the projected decline in PC sales.
With smartphones and tablets outside of Apple (NASDAQ:AAPL), he also pointed to the heated competition from rivals like Marvell (NASDAQ:MRVL), Texas Instruments (NYSE:TXN), Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:BRCM).
He added that “slowing consumer PC market growth may be worsened by supply bottlenecks due to the Japan earthquake.”
Concerning ARM-based PC and server chips, revenue from those segments is probably still a couple of years away, Shankar concluded.
Hew lowered his EPS estimate for fiscal year 2012 from $1.18 to $1.10, and for full year 2012 from $1.35 to $1.20.
Shankar maintains a "Hold" rating on Nvidia, which was trading at $18.45, dropping $0.72, or 3.76 percent. He slashed his price target on Nvidia from $24 to $18.
Although Shankar acknowledges strong growth for Nvidia in the smartphone and tablets market, it apparently won't be enough to offset the projected decline in PC sales.
With smartphones and tablets outside of Apple (NASDAQ:AAPL), he also pointed to the heated competition from rivals like Marvell (NASDAQ:MRVL), Texas Instruments (NYSE:TXN), Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:BRCM).
He added that “slowing consumer PC market growth may be worsened by supply bottlenecks due to the Japan earthquake.”
Concerning ARM-based PC and server chips, revenue from those segments is probably still a couple of years away, Shankar concluded.
Hew lowered his EPS estimate for fiscal year 2012 from $1.18 to $1.10, and for full year 2012 from $1.35 to $1.20.
Shankar maintains a "Hold" rating on Nvidia, which was trading at $18.45, dropping $0.72, or 3.76 percent. He slashed his price target on Nvidia from $24 to $18.
Tuesday, March 29, 2011
Qualcomm’s (QCOM) Still A Good Buy
With the growing demand for 3G devices, such as eBook readers, smartphones and tablets, Qualcomm (NASDAQ:QCOM) is strongly positioned to take advantage of the strong sector going forward.
Revenue was up about 25 percent and EPS was about 10 percent above analysts' estimates, with expectations they'll continue to perform in that range or better, as guidance was boosted by the company.
The cash position of Qualcomm adds to the strength of their financials, with over $19 billion on hand. There is also no long-term debt the company holds, making them even more attractive.
Those looking for continual increases in dividends like this, as it portends for future dividend growth, as the company has raised its dividend every year since 2003, showing the durability of the company during a number of difficult years.
Qualcomm closed Monday at $52.18, down $0.57, or 1.08 percent.
Revenue was up about 25 percent and EPS was about 10 percent above analysts' estimates, with expectations they'll continue to perform in that range or better, as guidance was boosted by the company.
The cash position of Qualcomm adds to the strength of their financials, with over $19 billion on hand. There is also no long-term debt the company holds, making them even more attractive.
Those looking for continual increases in dividends like this, as it portends for future dividend growth, as the company has raised its dividend every year since 2003, showing the durability of the company during a number of difficult years.
Qualcomm closed Monday at $52.18, down $0.57, or 1.08 percent.
Tuesday, March 22, 2011
Apple (AAPL) Says Global iPad 2 Launch on Schedule
The earthquake in Japan has generated worries that the launch of Apple's (NASDAQ:AAPL) iPad 2 may be in jeopardy, but according to Apple, the international launch of the device remains on schedule.
Apple said the original launch date of March 25 hasn't been changed.
An Apple spokesperson said, "Everything that is on [Apple's U.K.] website still holds true; the website says 25 March and that's when it'll be."
That's different for the Japanese launch, which has been pushed back until a later date.
Countries where the iPad 2 will go on sale on Friday in alphabetical order are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K.
Apple said the original launch date of March 25 hasn't been changed.
An Apple spokesperson said, "Everything that is on [Apple's U.K.] website still holds true; the website says 25 March and that's when it'll be."
That's different for the Japanese launch, which has been pushed back until a later date.
Countries where the iPad 2 will go on sale on Friday in alphabetical order are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K.
Monday, March 21, 2011
Nokia's (NOK) Tablet Platform May Not be Microsoft (MSFT)
While Nokia (NYSE:NOK) has made its decision to use Microsoft's (NASDAQ:MSFT) Windows Phone 7 for its smartphone strategy over the long term, that's not the case at this time concerning its entry into the tablet computer market, with their existing MeeGo platform, which they developed together with Intel (NASDAQ:INTC), still being in play, said an person aware of the situation.
The source said the cellphone maker is still taking into consideration its options for tablets and these include MeeGo, a platform Nokia has been jointly developing with Intel.
This isn't to say Microsoft isn't still in the race for the device, but that the final decision has yet to be made, and Nokia isn't in a hurry to force it, saying they want to get their first tablet right.
Even though some say Nokia and others like Samsung, Motorola (NYSE:MMI) and Research in Motion (NASDAQ:RIMM) and Hewlett-Packard (NYSE:HPQ) are late to the tablet game, that's nonsense, as the tablet wars are just heating up, and it appears it's going to be a long, drawn-out battle, with a lot of room for growth outside of the leader Apple (NASDAQ:AAPL).
For Microsoft, a tablet platform will be based on its upcoming Windows 8 PC operating system, rather than its Windows Phone software, and that's not due to be released until the latter part of 2012. Could it be that Nokia may release a Meego version first and then implement a Microsoft version later to see which takes hold better? Only time will tell.
Nokia was trading at $8.35, gaining $0.07, or 0.91 percent, as of 1:44PM EDT.
The source said the cellphone maker is still taking into consideration its options for tablets and these include MeeGo, a platform Nokia has been jointly developing with Intel.
This isn't to say Microsoft isn't still in the race for the device, but that the final decision has yet to be made, and Nokia isn't in a hurry to force it, saying they want to get their first tablet right.
Even though some say Nokia and others like Samsung, Motorola (NYSE:MMI) and Research in Motion (NASDAQ:RIMM) and Hewlett-Packard (NYSE:HPQ) are late to the tablet game, that's nonsense, as the tablet wars are just heating up, and it appears it's going to be a long, drawn-out battle, with a lot of room for growth outside of the leader Apple (NASDAQ:AAPL).
For Microsoft, a tablet platform will be based on its upcoming Windows 8 PC operating system, rather than its Windows Phone software, and that's not due to be released until the latter part of 2012. Could it be that Nokia may release a Meego version first and then implement a Microsoft version later to see which takes hold better? Only time will tell.
Nokia was trading at $8.35, gaining $0.07, or 0.91 percent, as of 1:44PM EDT.
Friday, March 18, 2011
Microsoft's (MSFT) New Office For Tablets
With the possibility of generating billions more through the wildly popular tablets, Microsoft (NASDAQ:MSFT) is getting a version of Office together to offer on the device.
On desktop and laptop computers Microsoft generates over $10 billion in sales annually. Add to that a portion of the tablet market (even with some cannibalization) and it could be a big boost for the software giant.
To get an idea of what Office for tablets will be like, it's closer to the version offered on Windows Phone 7 than its computer predecessor.
What Microsoft has named the "Metro" interface, which allows a user to switch between functions like Mail, Calendar, and Contacts in Windows Phone 7, will be included in the tablet Office version as well.
Microsoft closed Thursday at $24.78, down $0.01, or 0.04 percent.
On desktop and laptop computers Microsoft generates over $10 billion in sales annually. Add to that a portion of the tablet market (even with some cannibalization) and it could be a big boost for the software giant.
To get an idea of what Office for tablets will be like, it's closer to the version offered on Windows Phone 7 than its computer predecessor.
What Microsoft has named the "Metro" interface, which allows a user to switch between functions like Mail, Calendar, and Contacts in Windows Phone 7, will be included in the tablet Office version as well.
Microsoft closed Thursday at $24.78, down $0.01, or 0.04 percent.
Tuesday, March 15, 2011
Shares of (MMI) Cut on Lower Xoom Sales
Shares of Motorola Mobility (NYSE:MMI) were getting hit today as Oppenheimer & Co. analyst Ittai Kidron cut his outlook on the stock after he downwardly adjusted his expectations for sales of "Xoom."
Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”
He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.
Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.
Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.
Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”
He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.
Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.
Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.
Tuesday, March 8, 2011
Sprint (S) Releasing Tablet, 3D EVO and 4G Nexus S Smartphones?
On March 22 Sprint (NYSE:S) has scheduled what for them should be several blockbuster announcements, including the update on the release of its tablet, and the unveiling of the Nexus S 4G and the EVO 3D smartphones. The tablet is reportedly dubbed EVO View.
According to the source cited at Engadget, Sprint will "launch the Nexus S 4G from Samsung, and judging from the name, the phone should be something akin to a Nexus S with WiMAX. It seems this one could be either the SPH-D600 or SPH-D720, both of which have recently received certification from the Wi-Fi Alliance, though the SPH-D720 is more likely; the D600 shows WPS support, which is available in TouchWiz-skinned devices but not in stock Gingerbread. You might recall that Sprint came very, very close to launching its own version of the Nexus One before dropping it in favor of the EVO 4G last year, so maybe they're ready to do the deed this time.
"Next, a couple that we don't have much detail on: the EVO 3D, which is... well, a 3D-capable EVO of some sort. 2011 is certainly shaping up to be the year of 3D phones and tablets, so that wouldn't be much of a surprise. The other unit in the mix is the EVO View, a tablet that we're guessing will shape up to be something of a CDMA-powered Flyer. If this all pans out, it's looking like Sprint could own this show. CES was a bit of a dud for them, you might recall -- the EVO Shift 4G was the only handset announcement there -- so they're overdue."
Sprint closed Monday at $4.48, gaining $0.14, or 3.23 percent.
Source
According to the source cited at Engadget, Sprint will "launch the Nexus S 4G from Samsung, and judging from the name, the phone should be something akin to a Nexus S with WiMAX. It seems this one could be either the SPH-D600 or SPH-D720, both of which have recently received certification from the Wi-Fi Alliance, though the SPH-D720 is more likely; the D600 shows WPS support, which is available in TouchWiz-skinned devices but not in stock Gingerbread. You might recall that Sprint came very, very close to launching its own version of the Nexus One before dropping it in favor of the EVO 4G last year, so maybe they're ready to do the deed this time.
"Next, a couple that we don't have much detail on: the EVO 3D, which is... well, a 3D-capable EVO of some sort. 2011 is certainly shaping up to be the year of 3D phones and tablets, so that wouldn't be much of a surprise. The other unit in the mix is the EVO View, a tablet that we're guessing will shape up to be something of a CDMA-powered Flyer. If this all pans out, it's looking like Sprint could own this show. CES was a bit of a dud for them, you might recall -- the EVO Shift 4G was the only handset announcement there -- so they're overdue."
Sprint closed Monday at $4.48, gaining $0.14, or 3.23 percent.
Source
Friday, March 4, 2011
Microsoft (MSFT) to Release Windows for Tablets in 2012
People with knowledge of the matter said Microsoft Corp. (NASDAQ:MSFT) won't be releasing a tablet competitor to Apple (NASDAQ:AAPL) or Google (NASDAQ:GOOG) until the 2012 back-to-school season.
A beta version won't be available for testing until sometime near the end of 2011, said the sources.
"Microsoft needs to update its Windows 7 operating system with programs more tailored to the touch screens, size and battery life of tablet computers to win a place in the surging market for the devices. The longer it takes Microsoft to release its operating system, the more time Apple and Google have to strengthen their hold on the market, Bloomberg noted.
“If 2011 is the year of the tablet wars, Microsoft will be awfully late suiting up for that battle,” said Michael Gartenberg, a New Jersey-based analyst for research firm Gartner Inc. “It’s not a good position to be in.”
Gartenberg added a 2012 debut for Microsoft would probably put it up against a third-generation iPad from Apple and second and third versions of devices based on Google’s Android system. Hewlett-Packard (NYSE:HPQ) and Research In Motion Ltd. (NASDAQ:RIMM) will probably also release second-generation tablets by then, he concluded.
While that will probably be the case, it will depend upon what Microsoft offers, as possibly dozens, if not over a hundred different tablet offerings will probably be made over the next year or so, and even if some make some headway, Microsoft will gain some share.
And if they provide an excellent Windows version for the device, they could grab a built-in customer they've been serving for a long time.
A beta version won't be available for testing until sometime near the end of 2011, said the sources.
"Microsoft needs to update its Windows 7 operating system with programs more tailored to the touch screens, size and battery life of tablet computers to win a place in the surging market for the devices. The longer it takes Microsoft to release its operating system, the more time Apple and Google have to strengthen their hold on the market, Bloomberg noted.
“If 2011 is the year of the tablet wars, Microsoft will be awfully late suiting up for that battle,” said Michael Gartenberg, a New Jersey-based analyst for research firm Gartner Inc. “It’s not a good position to be in.”
Gartenberg added a 2012 debut for Microsoft would probably put it up against a third-generation iPad from Apple and second and third versions of devices based on Google’s Android system. Hewlett-Packard (NYSE:HPQ) and Research In Motion Ltd. (NASDAQ:RIMM) will probably also release second-generation tablets by then, he concluded.
While that will probably be the case, it will depend upon what Microsoft offers, as possibly dozens, if not over a hundred different tablet offerings will probably be made over the next year or so, and even if some make some headway, Microsoft will gain some share.
And if they provide an excellent Windows version for the device, they could grab a built-in customer they've been serving for a long time.
Wednesday, March 2, 2011
Apple's (AAPL) Unigue iPad Pricing Advantage
While Apple (NASDAQ:AAPL) competitors in the past have been able to compete on the price factor across products offered by the company, in the case of its iPad, they have turned that around, and now are not only competing with their strong brand, but at prices far below what their competitors are able to offer for their tablets.
Sanford Bernstein analyst Toni Sacconaghi said today there are four reasons for this.
The lack of a “price umbrella,” advantage on component costs, structural distribution advantage (sells through own stores), and Apple’s custom “A4″ processor.
Sacconaghi concluded, "We believe that Apple’s aggressive pricing for the iPad is consistent with (1) the increasing returns nature of the tablet market; (2) Apple’s view that the tablet market will be “huge” and “bigger than the PC market” and will attract competition from smartphone and PC vendors alike; and (3) the company’s desire to fully capitalize on Tim Cook’s assertion that the iPhone is the “mother of all halos”. We note that aspiring tablet competitors are further thwarted currently by reported shortages in key components including touch panels, which makes it harder to bring a product to market, let alone at competitive prices."
He maintains an "Overweight" rating on Apple, which was trading at $351.78, up $2.47, or 0.71 percent, as of 1:12 PM EST.
Sanford Bernstein analyst Toni Sacconaghi said today there are four reasons for this.
The lack of a “price umbrella,” advantage on component costs, structural distribution advantage (sells through own stores), and Apple’s custom “A4″ processor.
Sacconaghi concluded, "We believe that Apple’s aggressive pricing for the iPad is consistent with (1) the increasing returns nature of the tablet market; (2) Apple’s view that the tablet market will be “huge” and “bigger than the PC market” and will attract competition from smartphone and PC vendors alike; and (3) the company’s desire to fully capitalize on Tim Cook’s assertion that the iPhone is the “mother of all halos”. We note that aspiring tablet competitors are further thwarted currently by reported shortages in key components including touch panels, which makes it harder to bring a product to market, let alone at competitive prices."
He maintains an "Overweight" rating on Apple, which was trading at $351.78, up $2.47, or 0.71 percent, as of 1:12 PM EST.
Monday, February 28, 2011
iPad 2 (AAPL) Ready to Take on RIM (RIMM), Motorola Mobility (MMI), Verizon (VZ), HP (HPQ), Dell (DELL)
RIM (NASDAQ:RIMM), Motorola Mobility (NYSE:MMI), Verizon (NYSE:VZ), HP (NYSE:HPQ) are all taking aim at Apple's (NASDAQ:GOOG) iPad, as the anticipated unveiling of the iPad 2 is set for Wednesday.
Research In Motion Ltd., maker of Blackberry, is expected to ship its PlayBook tablet in either March or April at a price-point close to the iPad, which starts at $499. The PlayBook's major selling point: it will have tighter security and integration with corporations' back-software.
Motorola Mobility Holdings Inc., meanwhile, just launched Xoom, a tablet that will support 4G, the next generation high-speed wireless network, through Verizon Wireless for $599 with a two-year contract.
Hewlett-Packard Co., Dell Inc. (NASDAQ:DELL), Motorola Mobility, and Toshiba Corp. are all also preparing tablets to launch in 2011.
Research In Motion Ltd., maker of Blackberry, is expected to ship its PlayBook tablet in either March or April at a price-point close to the iPad, which starts at $499. The PlayBook's major selling point: it will have tighter security and integration with corporations' back-software.
Motorola Mobility Holdings Inc., meanwhile, just launched Xoom, a tablet that will support 4G, the next generation high-speed wireless network, through Verizon Wireless for $599 with a two-year contract.
Hewlett-Packard Co., Dell Inc. (NASDAQ:DELL), Motorola Mobility, and Toshiba Corp. are all also preparing tablets to launch in 2011.
Wednesday, February 16, 2011
PC Mall (MALL), Dell (DELL), HP (HPQ) Show PC Sales Still Humming
The announcement by industry commentators that the PC is basically dead and going the way of the dinosaurs is extremely premature, and not true, as recent quarterly results from PC Mall (NASDAQ:MALL), Dell (NASDAQ:DELL) and HP (NYSE:HPQ) confirm.
Hot markets like tablets and smartphones were cited as the reason PCs are now dying, but anyone who has to produce content knows that's not the case, and if the PC ever really does die, the new devices will have to be improved vastly to make that a reality.
It could happen, but it'll be years before it does, if ever.
For the most part, the newest, hot devices are content viewers not content creators. The market for them will skyrocket for those wanting to consume content on the go, but desktops and laptops will continue to be the screen of choice for those needing to do real work.
PC sales will continue to grow, but it will be at a slower pace, especially with those who were only using them for viewing content. In that regard, those markets have no reason to have a desktop or laptop.
For now, tablets sales will continue to expand, but as a ancillary screen for now, as far as those who need to do work on their computers.
Hot markets like tablets and smartphones were cited as the reason PCs are now dying, but anyone who has to produce content knows that's not the case, and if the PC ever really does die, the new devices will have to be improved vastly to make that a reality.
It could happen, but it'll be years before it does, if ever.
For the most part, the newest, hot devices are content viewers not content creators. The market for them will skyrocket for those wanting to consume content on the go, but desktops and laptops will continue to be the screen of choice for those needing to do real work.
PC sales will continue to grow, but it will be at a slower pace, especially with those who were only using them for viewing content. In that regard, those markets have no reason to have a desktop or laptop.
For now, tablets sales will continue to expand, but as a ancillary screen for now, as far as those who need to do work on their computers.
Thursday, February 10, 2011
Yahoo! (NASDAQ:YHOO) Targets Phones, Tablets with Digital Newstand
Yahoo! (NASDAQ:YHOO) announced today they're going to offer a "digital newstand" called Livestand, which will deliver content to users of tablets and other mobile devices to choose a variety of content topics they're interest in reading about or viewing, including finance and sports.
On a conference call Thursday, Irv Henderson, a vice president of product management for Yahoo said, "Don't think of this as an app, think of this as a platform."
Even so, it will be offered as an app on Apple's (NASDAQ:AAPL) iPad or tablets run by Google's (NASDAQ:GOOG) Android platform to begin with. Once that's in place and running, Yahoo said they'll eventually offer it on mobile phones and Web browsers.
This is an effort to expand the advertising network of Yahoo, which has been under pressure for some time.
Livestand should be available in June, and will only showcase content from select partners in the beginning. Ultimately, they want to open up the platform to everyone.
Yahoo didn't reveal any specifics as far as revenue-sharing plans or when the content creators outside their base will be empowered to use the resource.
Yahoo was trading at $16.62, up $0.19, or 1.19 percent, as of 2:42 PM EST.
On a conference call Thursday, Irv Henderson, a vice president of product management for Yahoo said, "Don't think of this as an app, think of this as a platform."
Even so, it will be offered as an app on Apple's (NASDAQ:AAPL) iPad or tablets run by Google's (NASDAQ:GOOG) Android platform to begin with. Once that's in place and running, Yahoo said they'll eventually offer it on mobile phones and Web browsers.
This is an effort to expand the advertising network of Yahoo, which has been under pressure for some time.
Livestand should be available in June, and will only showcase content from select partners in the beginning. Ultimately, they want to open up the platform to everyone.
Yahoo didn't reveal any specifics as far as revenue-sharing plans or when the content creators outside their base will be empowered to use the resource.
Yahoo was trading at $16.62, up $0.19, or 1.19 percent, as of 2:42 PM EST.
Hewlett-Packard (NYSE:HPQ) Offering Tablet, Smartphones
Hewlett-Packard (NYSE:HPQ) announced their first foray into the tablet and smartphone sectors, as the tech giant scrambles to become relevant in the rapidly growing markets.
As for the tablet, which they probably have a better chance of generating revenue and earnings with in the short term, it's a 9.7-inch screen called the TouchPad.
Two smartphones are in the works, with one, the Pre3, being developed for office workers. The other called the Veer, includes a screen about the 3" wide.
All the new products will be run on its WebOS operating system, which they obtained in their acquisition of Palm in 2010.
The problem and challenge for Hewlett-Packard is the products won't be available at earliest by the spring, and by latest, the summer.
Jon Rubinstein, a Hewlett-Packard senior vice president, said the reason for announcing so far ahead was to give developers an opportunity to create apps for the devices.
The Veer won't be introduced until the spring, and the Pre3 and tablet won't be released until the summer.
As mentioned, the tablet will probably have a far better chance of doing some damage and gaining share than the smartphones, as it seems the smartphone market is solidifying and consumers are settling into their decision. At least that appears the case for early responders and core users.
Those still making their minds up are the customers available to grab, and in that regard HP could get a piece of that market, as could all the emerging contenders.
With Apple (NASDAQ:AAPL) being the only real contender last year in tablets, that market has a lot of room to grow market share in, and if HP creates good products, it could generate some significant revenue over time.
As for the tablet, which they probably have a better chance of generating revenue and earnings with in the short term, it's a 9.7-inch screen called the TouchPad.
Two smartphones are in the works, with one, the Pre3, being developed for office workers. The other called the Veer, includes a screen about the 3" wide.
All the new products will be run on its WebOS operating system, which they obtained in their acquisition of Palm in 2010.
The problem and challenge for Hewlett-Packard is the products won't be available at earliest by the spring, and by latest, the summer.
Jon Rubinstein, a Hewlett-Packard senior vice president, said the reason for announcing so far ahead was to give developers an opportunity to create apps for the devices.
The Veer won't be introduced until the spring, and the Pre3 and tablet won't be released until the summer.
As mentioned, the tablet will probably have a far better chance of doing some damage and gaining share than the smartphones, as it seems the smartphone market is solidifying and consumers are settling into their decision. At least that appears the case for early responders and core users.
Those still making their minds up are the customers available to grab, and in that regard HP could get a piece of that market, as could all the emerging contenders.
With Apple (NASDAQ:AAPL) being the only real contender last year in tablets, that market has a lot of room to grow market share in, and if HP creates good products, it could generate some significant revenue over time.
Marvell (NASDAQ:MRVL) CEO Says PCs Threatened More by Tablets Than Laptops Are
The sudden explosion of sales of tablets and smartphones are more a threat to the desktop computer than it is to laptops, according to Marvell (NASDAQ:MRVL) Chief Executive Officer Sehat Sutardja.
“We’re already seeing a steady decrease in the market for monster PCs as the performance of laptops has significantly increased,” Sutardja said. “This is good for the industry because desktops are typically left under the desk for five to seven years, whereas consumers replace their laptop every two to three years.”
For laptops, Sutardja sees companies producing much more powerful ones in order to differentiate what they can better do than a tablet. Those actions will result in narrowing the gap between desktop computers and laptops, concluded the CEO.
As for smartphones and tablets, he said Marvell should improve the number of chips it gets into the popular devices in 2011.
Marvell is looking to alternative segments as concerns over the slowing of PC sales are pressing the company to develop new markets for its products.
Marvell closed Wednesday at $19.87, falling $0.37, or 1.82 percent.
“We’re already seeing a steady decrease in the market for monster PCs as the performance of laptops has significantly increased,” Sutardja said. “This is good for the industry because desktops are typically left under the desk for five to seven years, whereas consumers replace their laptop every two to three years.”
For laptops, Sutardja sees companies producing much more powerful ones in order to differentiate what they can better do than a tablet. Those actions will result in narrowing the gap between desktop computers and laptops, concluded the CEO.
As for smartphones and tablets, he said Marvell should improve the number of chips it gets into the popular devices in 2011.
Marvell is looking to alternative segments as concerns over the slowing of PC sales are pressing the company to develop new markets for its products.
Marvell closed Wednesday at $19.87, falling $0.37, or 1.82 percent.
Subscribe to:
Posts (Atom)