Apple has had its own fair share of bad luck recently, but the infamous analyst from UBS thinks Apple is still on the up, and even believes in a future of computers ruled by iOS.
The decline of demand for the desktop PC is no secret. Both Hewlett Packard and Dell Inc. have showed steady decline in demand for their IBM-clone PCs in the past few quarters. While this may change now that Windows 8 has been unveiled, it’s still not a good sign.
That’s not to say that it’s all peachy for Apple, either. The Cupertino software & hardware juggernaut reached its peak in share prices on Sept 21st ($705.07), but has fallen 21% in November. Of course, that wasn’t enough to strip Apple of its position as most valued public company. The number 2 spot is given to Exxon Mobil, who is valued at $401.3 billion. That’s still a fair way lower than Apple, who is currently valued at $528.4 billion.
Many believe that the next main competition of the electronics space will take place with tablet computers, and the big three all have their own entrants. Apple’s iPad has been a consistent seller since its release 3 revisions ago. Microsoft has finally thrown its hat into the hardware ring with its Surface product, and Google have also released a Nexus tablet. Add to this the foreign resistance of Samsung, and a whole bunch of Taiwanese/Chinese makers willing to get a piece of the action, and you have one hell of a fight on your hands.
So what is it that makes UBS analyst Milunovich think that iOS has the upper hand?
Well, for one, Milunovich doesn’t think the aforementioned competition have what it takes to last, especially this late in the game. While he did express some hope for Samsung, who has a 20% share thanks to their early start, the iPad’s 50% market share is still a force to be reckoned with.
A UBS survey of big-wig chief information officers showed that 60% expected tablets to replace PC’s over time. Milunovich believes that Windows may take a corporate niche as they have done in the past, but will not win over the home consumer market.
Apple’s own estimates state that tablet shipments will exceed those of PC by 2016, and Milunovich is well on board with that theory.
It just remains to be seen whether or not Apple will riding atop this new wave of digital devices.