Apple iPad Pro: An Enterprise Solution On The Way
Ever since the release of the latest tablet from Apple Inc. (NASDAQ:AAPL) it’s been clear that the company isn’t finished developing its slate line. The company’s ostentatiously titled its latest offering the iPad Air, mirroring the less powerful of the company’s notebooks. The nomenclature strongly suggests that an iPad Pro is indeed on the way. The question is whether or not it will do anything for the company.
There’s a clear reason for Apple Inc. (NASDAQ:AAPL) to release an iPad Pro. The company has repeatedly failed to get into the massive enterprise market. With information technology investment swelling in the face of a greener economy, that’s a good market to be in right now. The iPad has made some headway into enterprise, and Apple has tried its best to meet the market. The company still has a long way to go, however, and that’s where the iPad Pro comes in.
Apple iPad Pro launch
According to rumors from The Korea Times, Apple Inc. (NASDAQ:AAPL) is planning to release a 12/9 inch iPad Pro in early 2014. The rumors were sourced from an LG factory where the screen for the device is apparently in production. As with all rumors the iPad Pro story should be taken with a grain of salt, but there’s more reason to believe in it than in rumors of an Apple television.
Apple Inc. (NASDAQ:AAPL) needs to get into the enterprise market now that it’s open. The tech world is in a state of flux. Even with the launch of Windows 8, Microsoft Corporation (NASDAQ:MSFT) devices are behind those offered by Apple Inc. (NASDAQ:AAPL) If the Cupertino company doesn’t do anything to get a handle on enterprise, it could see the market swing toward the default option. Enterprise would once again be the realm of Microsoft and Microsoft alone.
That would be bad for Apple Inc. (NASDAQ:AAPL). The company is having its margins compressed in a more competitive device market. Those margins will all but disappear if Microsoft Corporation (NASDAQ:MSFT) can extend its control on enterprise for another five years and take chunks of the consumer market by default.
Apple iPad Pro Potential
It’s not exactly clear what the iPad Pro could do to hit out at Microsoft Corporation (NASDAQ:MSFT). At the very least it will give old reliable Apple Inc. (NASDAQ:AAPL) customers, those in the creative professions, something to work with on a touch screen. IT probably won’t become a fixture of any office, however, Apple just doesn’t have the support or the brand needed to get into enterprise.
If Apple Inc. (NASDAQ:AAPL) were to forgo the release of a television and concentrate efforts on enterprise, it might be a much better deal for investors. The enterprise market is massive, and has a huge influence on consumer buying. Apple has the most brand equity it has ever had. The opportunity is there. Apple is, however, at the end of the day a hardware company.
Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.