Analyst: Apple missing out on $63 billion opportunity by ignoring sub-$1000 notebooks

J.P. Morgan analyst Rod Hall believes Apple is missing out on a $63 billion market opportunity by not competing in the sub-$1,000 portable computing market, reports AppleInsider. Rather than lower the cost of its MacBook Air, Hall says Apple should develop a more full-featured version of iOS for devices that bridge the gap between the $500 iPad and the $1,000 MacBook Air. Hall believes Apple could flourish in the sub-$1000 market with a device that offers the touchscreen functionality of the iPad and the keyboard and trackpad of the MacBook Air. The device would run a version of iOS Halls calls “iAnywhere” and would outsell traditional Windows PC and possibly cannibalize sales of Apple’s low-end MacBook Air. Though Apple stands to lose some of its MacBook sales, it will make up for it with sales of this hybrid device, which could grab a significant portion of a market potentially worth $63 billion per year, argues Hall. “While some iPad owners are replacing laptops with the device, we believe that most use the iPad as a supplemental device to either a laptop or desktop PC,” Hall said. “If iAnywhere allowed these users to flexibly use an iPad as both a PC and a tablet, we believe that many would elect to own simply one device.” Apple already is successful in the tablet market and in the over-$1000 notebook market, with its MacBook line accounting for 40 percent of notebooks in that higher price range. This new device would target this in between market, but Apple already may have another product to fill that niche — the 12-inch iPad Pro. Earlier rumors suggest Apple was working on a larger-sized tablet that would appeal to professionals who want the slim form factor and apps of iOS, but a larger screen for work that requires more screen real estate. This iPad Pro was rumored to debut this year, but the latest reports suggest the device may not launch until next year. Would you be interested in a device that merged the best of iOS with the form factor of a MacBook Air? Let us know in the comments. Continue reading →

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