Apple Inc. (AAPL) Tablet Sales Future Remains To Be Seen: Daniel Ernst


Apple Inc.’s (NASDAQ:AAPL) future in terms of tablet sales remains to be seen, Daniel Ernst said in a discussion on CNBC. The discussion comes as Apple Inc. (NASDAQ:AAPL) reported their quarterly performance recently.

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According to Ernst, even though tablets have really taken off in terms of sales, we are now seeing slowing adaption of these devices because of what he said is a lack of key products for these devices. He explained:

“iPad sales started to slow in the first quarter. Tablet sales overall fell three percent in first quarter on the IDC numbers. So, the segment did phenomenally. It overtook laptops pretty quickly but it’s just [that]the productivity tools [and]education tools are not really there yet to make it a widespread [device category]. As a business analyst, I love it. I use it all the time but I can see that the wider spread usage is going to be constrained. [Tim] Cook talked about those two issues. ”

Andrew Ross Sorkin then said that Tim Cook did say in the Apple Inc.’s (NASDAQ:AAPL) earnings call that if the company gets businesses to get tablets, it would mean a big boost to iPad sales. According to Ernst, Cook did say this in addition to identifying the education sector as another key market to boost tablet sales. Sorkin pointed out the recent deal the iPhone-maker made with International Business Machines Corp. (NYSE:IBM). Sorkin asked Ernst how much this deal will help Apple Inc. (NASDAQ:AAPL). The Hudson Square Research analyst said:

“I think the IBM thing, it will take time [before we see results]but one of the things they talked about, actually not on the call but earlier, was they were very pleased to see Microsoft finally bring Office on to the iPad, which, as you said, is two years late but I think we will start to see it. I would say most of the commentary around tablets and iPad are very current- and backward-looking. I think we are still going to see growth there but it’s going to be harder to see. I think the real focus for Apple though, however, is what this new ‘products and services,’ [which]is the other word that they used, is going to be. I think when we see that, we will be able to judge.”

Watch the video below where Ernst also discussed why screen size for the iPhone is not really what the company is focusing on.

Disclosure: None

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