Schwarz: Apple iPad to change iPhone strategy; thrash all analysts’ unit sales estimates (with vid)

The iPad will transform Apple’s business model. TSC’s Jason Schwarz explains how and what it means for Apple stock.

The iPad is going to thrash all analysts’ estimates, says Schwarz.

Direct link to video via TheStreet here.

MacDailyNews Take: Since the first iPad unit estimates began appearing, we have been routinely saying that they were all too low (for examples, see: here, here, here, here, and here). Schwarz, as usual, gets it.

[Thanks to MacDailyNews Reader “David E.” for the heads up.]


  1. Uh, shrink the iPhone? Where is this rumor that he’s heard that we’ve not heard a word of? I get and agree with the rest of it. But I think the iPad is already enough larger than the iPhone, and perhaps someone has misinterpreted ‘it will be larger and a gamechanger’ to mean ‘shrink the iPhone’.

  2. There is no way that Apple is going to decrease the functional use of the iPhone by decreasing it’s screen size. If it is to be decreased (which I doubt) it will be because it makes the iPhone a more functional device. More likely the iPhone will start to come in two sizes. The iPhone is already well differentiated from the iPad (phone calls anyone), as is the iPod Touch (pocket sized). The iPad will change the face of computing because it will be a gateway into the way that all mobile computers are made and used. It will reinvent the desktop for home use and the mobile screen for all other use over the course of the next several years.

  3. Hmmm…..I think he’s nuts if he thinks the iPhone screen size is going to change. The rest of it I can see, but the iPhone changing screen size? Nah. Ain’t gonna happen.

  4. I dont think that the iPad will be a game changer for the reason he states. Schwartz says that the iPhone will be the “glue” to the internet and iPad and that the iPad will be a “mobile device”.

    It would be a bad decision for Apple to downsize the iPhone because all the apps would be strange and it would not be making the iPhone any better than it already is. Instead of expanding on the iPhone, Apple is making the iPad, a device in between the macbook and iPhone, a lot like the Porche cayman in between the carrera and boxter. Like the iPad the Porche cayman does not make very much sense, yet it is a very well selling car with a six month long waiting list. I hope as a share holder that it will be the same for the iPad.

    I can’t say much about it’s functionality until I try one though!

  5. Why would they gift wrap the iPhone market share and give it away when iPhone can still be the glue/hotspot for the iPad? I’m not going to have my iPad in a man-purse by my side at all times. Right now, the current screen size is fairly close to the sweet spot.

  6. This guy is jackass. his analysis is based on rumors and if the rumors are right Apple will have two iPhone model by end of this year, one with slightly bigger screen then the current iPhone.

  7. The guy is plain looney. Apple would never dilute one product to make another appear great. A move like that would be against everything Steve Jobs and Apple is about. Believe it or not, there are people out there who want a smaller, simpler iPhone. Apple will likely release smaller versions of the iPhone, just like they did for the iPod, and for that they will need smaller screens.

    Tethering? Yeah, like people are going to increase their cell data package so they can pay through the nose even more to download those iTunes purchased movies over 3G/4G. Cell contracts are too damn expensive already and unless Apple can change that, it won’t happen any time soon.

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