iPad Expected to be Overshadowed by Next iPhone

In a recent Forbes article by Agustino Fontevecchia, it is expected that the iPhone 5 launch will be Apple's biggest yet. According to UBS’s investment research team the iPhone 5 is expected to be Apple's “biggest launch ever.” The new iPad, which was launched Friday, has only furthered demand for Apple stocks along with the rumor that a dividend will be paid this year after raising stock price target to $675. However, according to UBS this is actually being fueled by the coming launch of the iPhone 5 during a period of “the biggest and strongest product cycle in the history of consumer electronics.”

Expected to be on sale around October; the iPhone 5 is to be fully redesigned and Apple will be seeking to entice both iPhone and non-iPhone users to switch to the newer model by accelerating the number of initial carriers it sells to and by increasing the upgrade cycle in order to have a bigger launch. Comparing past launches, Apple has consistently increased the speed of iPhone launches as the iPhone 4S launched in 29 countries within in two weeks after the iPhone 4 and 3GS which had 22 countries within 6 weeks and 14 within the first week. Similarly, sales for Apple's iPhones are now projected to be up by UBS who expect them to reach $156.5 million up from $149.5 million in fiscal 2013.

However, Fontevecchia points out that the new iPad launch and not just the hype of the iPhone from analysts will help Apple. He also points out that the call for a dividend will continue to be pushed as Apple has plenty of cash, around $100 billion, and stock prices continue to stay high. One of the major problems that Apple could have is if they can't meet demand for their products. Despite some of the few forces against Apple's success the others lead Fontevecchia to believe that the next iPhone will be Apple's biggest yet because of the success of iPad and the continued success of the company as whole as shown by stock prices.

In my opinion, I think that Apple will do very well because of how many people want/demand their products. This is evident, as there has been so much success of previous iPhones and the hype surrounding this next edition is high. As no one outside of Apple truly knows exactly what the new product will add or change to previous models, it is difficult to make a true analysis yet of how the iPhone 5 will turn out. However, it is obvious though that these products have huge demand as the next model probably has a few months before it will be on sale. This really shows how much of a market leader Apple is because they have just come out with their new iPad and there are already talks about the next iPhone. I'm certain Apple understands how to obtain huge success from their next phone. I would think that they should continue to do what they have in the past and present the iPhone 5 as being the best phone there is and that you need to have it.

What do you think? Will the next iPhone be the biggest hit yet for Apple and why?

Another iPad, Another Update.

Looking back at the revolutionary ‘1984’ Superbowl commercial, it is clear that Apple, with Steve Jobs at the helm, has been a leader in terms of both the software and hardware innovation that it has brought to the computing industry. The Apple II, Macintosh, iPod, and iPhone were all products that completely changed the way that people used technology, and always led back to the theme of the iconic ad: “Think Different”. Apple changed the way that people interacted with computers, incorporating the graphical user interface into the Macintosh, changed the way that people consumed music with the iPod, and change the way the music industry operated with iTunes. However, more recently with the March 7^th unveiling of Apple’s newest iteration in the iPad product line, I felt that it would be appropriate to take a look into the role that the development of the tablet computer has played in taking a step toward Apple’s vision for the future of computing. In a New York Times article titled “As New iPad Debut Nears, Some See Decline of PCs” by Nick Wingfield, one can see the direction that the touch-screen device has the potential to take over the course of the next few years.

“When we talk about the post-PC world, we are talking about a world where the PC is no longer the center of your digital world but rather just a device,” he said, pacing the stage. “We are talking about a world where your new device, devices you use the most, need to be more portable, more personal, and dramatically more easy to use than any PC has ever been.” –Tim Cook

With the release of the original iPad and iPad 2, the effect that the tablet line had on the industry was huge, as tablets caught “on fire” as stated by a former Microsoft executive; Apple had sold over a million iPads within a month, almost half the time that it took Apple to reach the same amount of sales with the original iPhone. In the time between the iPad 2 and the recent “new iPad” companies such as Samsung, RIM, and HP have tried, with moderate to little success, at introducing a solid competitor to the iPad. However, more recently, Amazon has come out with a product called the Kindle Fire, aimed at directly competing with the iPad in functionality as well as, more importantly, price. In an environment where the tablet computer has become a target for competition from other companies, how will Apple continue to distinguish itself?

Despite the so-called “amazing new features” of the new iPad, the recent product update is really just that, an update. No innovation. No mind-blowing new features. However, people undoubtedly will still flock to buy them. I think the key to Apple’s strategy is the persistence, thought, and research that they put into their products. Drawing Walter Isaacson’s biography of Steve Jobs, seeing the CEO’s focus on quality, innovation, and detail, even when dealing with minute details such as the color of the case, shape of the screws, or aesthetics of the hardware layout inside the products, it is no wonder that Apple has been able to alter the face of computing in such dramatic and long-lasting ways. In contrast to companies such as Six Flags that try to expand into areas relatively unrelated to their CVP, businesses such as Apple have such great success because they focus on their strengths, and gradually develop their products over time. While they have had success with dramatic new innovations such as their MacBook Air, by following the trends of their products, it is easy to see that they start with a revolutionary idea, and then work on improving the product over and over again to make the product and experience more user-friendly each time.

What do you guys think of Apple’s strategy, particularly of the company’s push into developing the tablet market? Are there any potential strengths or weaknesses that it has?