This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

iPad Event: A 'Most Important iPad Refresh'

NEW YORK ( TheStreet) -- Tuesday, Apple (AAPL - Get Report) is holding its iPad event to refresh the company's second-largest driver of revenue, behind the iPhone. It could be the company's most important iPad-centric event since the original iPad was announced, according to one analyst.

Cantor Fitzgerald analyst Brian White, who rates shares "buy" with a $777 price target, notes that the iPad update could help refresh iPad sales. "We believe this iPad launch will help put a bottom in the iPad sales cycle that reached negative territory in 3Q:FY13 for the first time in the history of the iPad," White wrote in his note. He is expecting that Apple will unveil the fifth-generation of the 9.7-inch iPad, and an updated second-generation of the iPad mini. He also believes that Apple will update the MacBook Pro, and give more detail about its desktop operating system, named OS X Mavericks.

In Apple's fiscal third-quarter, the company sold 14.6 million iPads, compared to 17 million in the year-ago quarter. The company released a new iPad in March 2012, accounting for some of the falloff. In the second-quarter of 2013, Apple sold 19.5 million iPads, so it's clear that iPad sales are bumpy, and a product refresh would go a long way toward putting it back on growth, from a units sold perspective.

According to research firm IDC, Apple continued to lose tablet market share to competitors, including Samsung, which runs Google's (GOOG) Android operating system. Apple had 32.4% of the tablet market for the second-quarter, compared to 60.3% in the year-ago quarter.

Conversely, Samsung had 18% of the tablet market, up from 7.6% in the year ago quarter. Rounding out the top five in tablet sales were ACER, Lenovo and Asus, which makes Google's Nexus tablets.

The iPad still accounts for a large chunk of Apple's revenue. In the fiscal third-quarter, iPad's accounted for $6.37 billion of Apple's $35.3 billion in quarterly revenue.

White believes the fifth-generation iPad will have a slimmer, thinner design, taking its new design from its smaller sibling, the iPad mini. "We believe the iPad 5 will be approximately 15% thinner than the iPad 4 and we estimate at least 20-30% lighter," White notes. He also believes it will be 7% to 10% smaller than its predecessor, and come in Apple's new color scheme which it incorporated into the iPhone 5s: space gray, gold and silver.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
GOOG $524.05 0.00%
FB $80.78 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs