While the growth in popularity of the Apple Inc. (NASDAQ:AAPL) iPad is a good thing for the tech titan, it does not bode well for the rest of the computer industry. When you combine the growth of the iPad with the relatively stagnant response to the release of Windows 8, it is easy to see why PC growth may be slow in 2013.
Shaw Wu of Stern Agee provided AppleInsider with an inside look at a note to investors, discussing this exact point. In the note, he discusses why he thinks other research firms may be off base in predicting a PC market growth of as high as nine percent.
Apple Inc. (NASDAQ:AAPL) Press Info
There are many reasons why Wu is not buying into big growth for the PC market in 2013. He said:
“Windows 8 hardware priced between $500 and $1,200 is "uncompetitive" compared to lower-priced options from Apple and even Google's Android. “
The early popularity of the iPad mini, combined with its low barrier of entry at $329, has given consumers a cheaper alternative to Windows 8 machines.
The article goes on to further discuss Apple’s Mac lineup:
“He said Apple's "highly differentiated" computers will continue to eat away at PC marketshare, while Microsoft's Windows platform will also be hurt by low-cost device makers based in the Asia-Pacific region.”
There is no denying the optimism shared by some regarding the Windows 8 operating system. However, Wu is not on board with the hype. He is sticking to his guns, backed up by the feedback received from supply chain sources:
"The feedback we have gotten from supply chain sources is that there is great confusion, as there are too many form factors (PC notebooks, tablets, ultrabooks, and convertibles) and most do not know what to build and will actually sell.”
One thing is for sure: Apple Inc. (NASDAQ:AAPL) is not facing any problems in terms of what they should be building and selling.
Does this mean the PC market is going to eventually become nothing more than a “niche?” Is it possible that the future will see tablets and smartphones taking over, with PC’s becoming the minority?
Wu feels that this change is inevitable: