Katie Marsal
"The move could take place in the form of an smaller laptop and/or a tablet device using the iPhone's multi-touch technology," Sr. Analyst Gene Munster explained in a report issued to client investors. "Although we do not have firm evidence, either product would be a strategic extension of Apple's current technology base."
The ultraportable device could arrive in the form of an extension to the Cupertino-based firm's MacBook family of notebooks, Munster said, with a full keyboard and small screen of approximately 10 to 11 inches. Such an offering would be "a logical addition" to the Mac platform, he added, as any notebook with a more compact form-factor than the current 13-inch MacBooks would help Apple continue its share gains in the portable space, especially in Asia where UMPCs are more popular relative to other markets.
Alternatively, the analyst said, Apple is likely focusing a chunk of its R&D development efforts on the multi-touch technology used in the iPhone. He said an ultraportable product from this category would likely be a tablet device similar to, but slightly larger than, the iPhone.
"Such a device would likely have features and capabilities that the iPhone does not have, like data storage and file saving as well as document editing features," he wrote. "We believe Apple's multi-touch technology is slightly ahead of competitors using touch based input technology, and as such we expect Apple to leverage its multi-touch technology in future products."
In his note to investors, the PiperJaffray analyst also weighed in with some commentary on the impact of "iPhone hacking" on Apple's financials, which includes attempts by seasoned users to both install third-party applications and unlock the handsets from carrier AT&T.
A more robust set of applications would make the iPhone a slightly more attractive device, Munster agreed, but said for the majority of potential users this concept has "little to no impact" on their iPhone purchasing decision process, and therefore the issue has a minimal financial impact.
"Some of the more popular third-party applications that hackers are installing include an instant messaging application, a voice recording application, and several games," he wrote. "We believe Apple may eventually open the iPhone up to a limited amount of pre-approved applications that they would monetize via the iTunes Store, but there has been very little indication from the company that that is forthcoming."
Similarly, Munster also believes the financial impact of iPhone unlocking solutions on Apple is also marginal. While unlocking would imply that Apple is losing some of its AT&T revenue share, he believes the actual percentage is in the low single digits (at most 10 percent), and therefore is not of much significance to the company's bottom line.
"We are modeling for the [September quarter] revenue share from AT&T to be $7 million, so our estimate of unlocked iPhones would only have a [maximum] $700k impact on revenue in the quarter," he advised clients. "However, this does not account for the additional phones that are sold because they can be unlocked, which partially offsets the impact of the foregone shared revenue."
Munster maintained his Outperform rating on shares of Apple with a price target of $211.
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31 Comments
please let it be true this time!. my 12" powerbook is on it's last legs... when do you think they will anounce it officially? after new year? or hogmany as we call it
Someone else has probably suggested it before, but IMHO, Apple really missed out. They should've teamed with T-Mobile instead of AT&T and had the iPhone be part of T-Mobile HotSpot @Home. If Apple really wanted to shift the paradigm of telephony, supporting WiFi VOIP would've sent a real message to all the carriers. Trade less revenue for a much shorter exclusive agreement, and leave the competitors spinning with the need to support WiFi.
All that said, I'm sure Apple saw more money to be made with AT&T. I'd be shocked if Apple is losing any money to iPhone unlocking (specifically speaking about AT&T here, which Piper Jaffray was covering, not international). Anyone going to that trouble was never going to use an iPhone on AT&T in the first place. If anything, they are selling more phones because of this.
Conversely, I know of at least 30 iPhones that will likely not be sold because of the lack of 3rd party software development support. Even though Apple claims to not care about business/enterprise customers, lack of developer support is killing plenty of potential sales. One could argue Apple doesn't want these, but they are lost potential sales nevertheless.
Shouldn't the ultra-portable already be out by Piper Jaffray's predictions? Thank goodness it only ever sounds like they have one "analyst", a manager and an intern working on this at any given time. Any more people working on this quality if predictions would be a waste of time and money.
For a company with the repuation of Piper Jaffray, I find their crystal ball gazing somewhat disconcerting for investors who tend to make decisions based on hard fact not unsubstantiated rumour. I for one wouldn't buy Apple stock based on this report.
So what of this persistent rumour about the new ultra-portable?
I think most Apple-afficionados would agree that its entire portable line-up is due for a refresh. It'd be nice to see the Mac Book Pros lose a few founds, gain a new key board and maintain the same screen sizes. The Mac Book line-up's white and black form factors seem to have dated much faster than the clean aluminium design of the Pro range, so a 13" screen in a thinner form factor with aluminium to complement the Mac Book Pro 15" and 17" would seem logical. That would give a range of three Mac Book Pros. I hope that all would utilise as much flash memory as possible to reduce thickness and boot times.
I am sure an update along these lines is definitely in the works. But is the re-vamped 13" essentially the new ultraportable?
If Apple is working on a fourth PC model, e.g. a 10" or 11" model with a microscopic thickness, then this is indeed important news. No one really seems to know the answer to this.
Personally, I'd prefer either a 13" or a 15" Mac Book Pro with integral DVD drive. If I wanted an ultaportable, which I do, then I'll wait for a 16 Gb iPhone with 3G.
Sr. Analyst Gene Munster explained in a report issued to client investors. "Although we do not have firm evidence, either product would be a strategic extension of Apple's current technology base."
Yeah, like this guy has a clue. He reads this forum where some dude starts a thread saying he wants apple to make an ultra portable, and now we'll see one within 4-6 months? Don't believe the Hype.
Well my analysis indicates Apple will soon release a flying saucer. It will be about 12m across and...
I am sick of the rubbish coming from 'analysts' being reported as if it were news. It is just waffle and should not be reported on IMO. The members of this forum could do a better job of speculating.
AI used to be about inside leaks. If this keeps up you could as well have the I stand for Inane.