iPad 3 Will Keep Apple on Top of Mobile PC Market

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- Apple ( AAPL) has long held that there has been a shift to a post-PC era, in which people have given up their PCs for iPhones and iPads.

This theory seems to have gained strength. According to a recent report from NPD DisplaySearch, Apple is the largest mobile PC player (which includes the tablets and notebooks) with a share of about 27%.

HP ( HPQ) and Dell ( DELL) came in a distant second and third in the mobile PC market with both companies' market share in single digits. With the pending announcement of the iPad 3, Apple could solidify its dominant position in the mobile PC market.
Apple looks set to launch a new iPad next week.

Our $550 price estimate for Apple stock is about 5% above market price.

See our complete analysis of Apple here.

According to the report, nearly 80% of Apple's mobile PC shipments were iPads, which accounted for a 59% share in the tablet market. This is a remarkable feat considering that iPad has been in the market for less than two years. This finding was also confirmed by Canalys, which mentioned that tablets helped the PC market reach 120 million units in the fourth quarter of 2011, 16% higher than the year-ago quarter.

The treatment of the PC market by Canalys is slightly different because it not only includes tablet PCs and notebooks but also traditional desktops. Excluding tablets from the equation, the PC market actually declined 0.4%. Apple shipped over 15 million iPads in the fourth quarter of 2011, and according to the Canalys report, iPad's accounted for a 17% share of the total PC market.

The iPad accounts for just under 15% of our price estimate for Apple and so continued momentum here bodes well for shareholders. The company recently sent out media invitations for March 7, leading to strong speculation that it will announce the iPad 3 at this event.

Click here to find out how a company's products impact its stock price at Trefis.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

If you liked this article you might like

North Korea Threat Resurfaces to Drag Stock Futures Lower

Nomura Sees Softness in iPhone 8 Pre-Orders

North Korea, iPhone 8 and Hewlett Packard Enterprise Layoffs Move Markets Today

Market Selloff Survival Strategies: Cramer's 'Mad Money' Recap (Thurs 9/21/17)