AppleInsider Staff
While many recent reports have focused on Apple's new iPad mini, one market analyst says an uptick in expected enterprise tablet purchases will allow the full-size iPad to continue its domination of the market.
In a note to investors on Monday, Piper Jaffray analyst Gene Munster said a recent survey of 59 chief information officers over 12 different industries points to continued growth for Apple's 9.7-inch iPad, which is reportedly better suited for business operations than the iPad mini.
The investment firm's annual CIO survey suggests that 57 percent of organizations plan to deploy tablets to workers in 2013, compared to 46 percent in 2012. Of the CIOs who said their companies would participate in device rollouts, 15 percent have plans for "broad deployments," almost four times as many as last year's 4 percent. This compares to the 34 percent of respondents who expect to increase investments in PCs.
"We view the greater deployment of tablets as a positive for AAPL given that we believe the iPad has over 60% global tablet share and likely a higher share among enterprises," Munster wrote. "We believe continued growth in enterprise tablet deployment will help drive continued growth in the full sized iPad segment given the larger iPads are better for content creation."
The analyst went on to say that "broad" enterprise deployments are expected to increase rapidly in the next 3-5 years.
Also of note is a decrease in the number of companies that do not have any deployment plans, which fell from 54 percent in 2012 to 42 percent in 2013. Only 5 percent of respondents expected to decrease spending in tablets for the coming year while 20 percent plan to make funding cuts for PCs.
In addition to the increased tablet adoption, the survey found storage and security remain the top two least discretionary items for the year with 64 percent and 63 percent of respondents saying they expect to increase spending in those areas, respectively. Overall, 76 percent of the CIOs polled said they planned to increase spending in 2013, slightly down from 90 percent in 2012.
Piper Jaffray reiterates an overweight rating for AAPL stock, with a target price of $900.
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38 Comments
Sorry to add MicroSoft to this, but for them to compete they will need to sell office for the ipad. MicroSoft said they will offer office for the pad, but knowing them it will be a watered down version and always "to be delivered later this year". lol
I said this when the iPad first came out. I could see this being a superb sales tool. For example, when you're at a trade show, you could have all your literature and promotional videos on the iPad and easily show information to prospective customers. Laptops are far clumsier for this purpose. Data gathering is, of course, another very useful application. And then, of course, you have the "all your technical data and repair manuals in one place" application - like the airlines are starting to do to eliminate 40 pounds of paper manuals per flight.
[quote name="AppleInsider" url="/t/155343/apples-9-7-inch-ipad-to-get-boost-from-increased-enterprise-tablet-adoption-in-2013#post_2255090"]Apple's 9.7-inch iPad, which is reportedly better suited for business operations than the iPad mini. [/quote] Didn't a lot of people here say the Mini would be better for a lot of businesses because of its portability? Funny that businesses still gravitate to the full size original.
Interestingly, this doesn't take into account how users feel about iPad Mini. Since the iPad Mini is more or less equivalent to the larger iPad, I feel that a lot of companies would choose the mini %u2013 sacrificing the larger screen to be able to cut costs. Still, Apple wins.
IMO I believe lots of people look at the iPad mini for play and casual use. Even the few people I know have bought the mini for their kids and wives to play around with. It seems that business people and power users (including myself) will always prefer the larger iPad especially with the upcoming future upgrades and designs.