The Rise of the Ipad and Tablets: Assessing Winners and Losers in the Global Tmt Ecosystem
July 13, 2010
The rise of the iPad and tablets: Assessing winners and losers in the global TMT ecosystem
Research Report
Apple masters “5Cs” with the iPad, creating a device distinct from PCs & previous tablets
Relative to traditional PCs and past tablets, we see Apple’s iPad ecosystem as unique in 5 key ways, which we call the “5Cs”: (1) Consumption: the iPad focuses on information consumption versus production; (2) Content: the iPad is tightly integrated with content; (3) Connected: the iPad is “always connected”; (4) Constant operation: the iPad is an “instant on” device with all-day battery life; (5) Commerce: Apple’s ecosystem ensures that consumers are always “ready to buy.”
James Covello
(212) 902-1918 james.covello@gs.com Goldman Sachs & Co.
Assessing the impact on the PC ecosystem
Based on our analysis of the tablet market we expect: (1)16 mn tablets in 2010 and 35 mn in 2011, (2) tablet sales to begin to impact the notebook market in 2011, with about 40% of tablet sales being cannibalistic to notebooks or netbooks (and 95% coming out of netbooks in the first year).
James Schneider, Ph.D.
(917) 343-3149 james.schneider@gs.com Goldman Sachs & Co.
Sarah Friar
(415) 249-7436 sarah.friar@gs.com Goldman Sachs & Co.
Winners and losers from the tablet transition Primary winners: (1) Apple, from its leadership position with the iPad and corresponding profit pool, (2) ARM, as we expect most tablets to be designed with low-power, ARM-based chips, (3) component vendors with significant iPad content including Samsung, Infineon, Broadcom, Linear. Secondary winners: Hon Hai, Murata, Citrix, Lam, Qualcomm, SanDisk, SBA Comm., Crown Castle, Syniverse, media companies, SaaS apps, CDNs. Primary losers: (1) Microsoft, given the impact of lost Windows sales and its lack of a competitive tablet response, (2) Intel and AMD, as they suffer lost unit volumes to ARM-based competitors, (3) HDD makers, Marvell, LSI given the move to solid state storage from
The rise of the iPad and tablets: Assessing winners and losers in the global TMT ecosystem
Research Report
Apple masters “5Cs” with the iPad, creating a device distinct from PCs & previous tablets
Relative to traditional PCs and past tablets, we see Apple’s iPad ecosystem as unique in 5 key ways, which we call the “5Cs”: (1) Consumption: the iPad focuses on information consumption versus production; (2) Content: the iPad is tightly integrated with content; (3) Connected: the iPad is “always connected”; (4) Constant operation: the iPad is an “instant on” device with all-day battery life; (5) Commerce: Apple’s ecosystem ensures that consumers are always “ready to buy.”
James Covello
(212) 902-1918 james.covello@gs.com Goldman Sachs & Co.
Assessing the impact on the PC ecosystem
Based on our analysis of the tablet market we expect: (1)16 mn tablets in 2010 and 35 mn in 2011, (2) tablet sales to begin to impact the notebook market in 2011, with about 40% of tablet sales being cannibalistic to notebooks or netbooks (and 95% coming out of netbooks in the first year).
James Schneider, Ph.D.
(917) 343-3149 james.schneider@gs.com Goldman Sachs & Co.
Sarah Friar
(415) 249-7436 sarah.friar@gs.com Goldman Sachs & Co.
Winners and losers from the tablet transition Primary winners: (1) Apple, from its leadership position with the iPad and corresponding profit pool, (2) ARM, as we expect most tablets to be designed with low-power, ARM-based chips, (3) component vendors with significant iPad content including Samsung, Infineon, Broadcom, Linear. Secondary winners: Hon Hai, Murata, Citrix, Lam, Qualcomm, SanDisk, SBA Comm., Crown Castle, Syniverse, media companies, SaaS apps, CDNs. Primary losers: (1) Microsoft, given the impact of lost Windows sales and its lack of a competitive tablet response, (2) Intel and AMD, as they suffer lost unit volumes to ARM-based competitors, (3) HDD makers, Marvell, LSI given the move to solid state storage from