Analyst: Apple’s Upcoming Hybrid iPad Will Hurt Intel
Does Apple’s (NASDAQ:AAPL) rumored development of a large-screen hybrid iPad signal trouble ahead for notebook processor maker Intel (NASDAQ:INTC)? According to a recent note to investors obtained by Barron’s, Evercore Partners analyst Patrick Wang believes that Apple may unveil a revolutionary 12-inch iPad in the fall of 2014 that will be targeted at enterprise users.
Wang expects that this iPad will operate as a two-in-one hybrid device that combines the iPad’s form with the functionality of a MacBook Air “in the same spirit” of Microsoft’s (NASDAQ:MSFT) Surface. However, unlike the MacBook Air, the 12-inch enterprise iPad will not rely on an Intel CPU. Instead, the hybrid tablet will use one of Apple’s A-series processors.
“Powered by the A8 chip (perhaps 4C), this expands ARM’s (NASDAQ:ARMH) reach and, once again, transforms the traditional notebook market as we know it,” wrote Wang via Barron’s. However, this transformation of the notebook market could negatively impact Intel. “This would hit Intel in an area of strength — enterprise NBs — and open up the monopoly to price competition, a common theme for Intel in 2014,” noted Wang.