Are Apple’s New iPads the Coup de Grâce for the PC Market?
A recent note to investors from Wells Fargo analyst Maynard Um suggests that Apple Inc.’s (NASDAQ:AAPL) latest iPads may further undermine the declining worldwide PC market, Apple Insider reports. Although Microsoft Corp.’s (NASDAQ:MSFT) September-quarter earnings beat analyst revenue and earnings per share expectations, Um believes the 7 percent decline in Windows OEM revenue confirmed a weakness in the overall PC market.
While Microsoft’s fairly positive earnings report suggests that the PC market has stabilized, Um believes this may be a short-term trend. According to Um, Microsoft’s business demand is “being driven by Windows 7 refresh.” The analyst noted that more than 75 percent of desktops are still running Microsoft’s last-generation operating system. Not only does this suggest that the PC market hasn’t stabilized, it also indicates that Windows 8 has not been widely adopted by Microsoft’s enterprise users.
Unfortunately for Microsoft, Apple’s new iPad Air and iPad mini with Retina display are likely to further erode the Redmond, Washington-based company’s Windows revenue. “The introduction of new Apple products and other competitively priced tablets could adversely impact consumer PC sales,” wrote Um, via Apple Insider.