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.]
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May the Schwarz be with you.
Yup, easy for those that understand and not stuck with their face in a Microsoft PC all day!
Well, when it is working.
2 Batteries. Slide out keyboard. BET ON IT.
MDN Magic Word: ‘lack’
Didn’t know your Schwarz was as big as mine!
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’.
NOOOO, don’t shrink the screen size of the iPhone!
Other than that, I agree with da man.
He is half right:
Right – The iPad estimates are low.
Wrong – The screen size of the iPhone will not change.
(with flash) crappushino, kill flash!
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.
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.
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!
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.
BOOM.
iPhone as an internet antennae for iPad.
YES!
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.
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.
A smaller iPhone as a second iPhone model makes sense. For some people an iPad and a smaller iPhone would be all that’s necessary.
For others, myself included, there are times when you won’t have your iPad but you still want your phone with its apps: at the movies, at a concert, at a restaurant, at your kids soccer game, church, playing sports. The fact that it is an “always with you” device is significant for apps such as restaurant finders, tipping guides, maps etc.
Can’t take this report serious. Apple is not going to shrink the size of the iPhone. That would seriously piss off all their developers and customers.
What they may do is introduce a ‘Nano’ version. Maybe even get the costs down to free with a contract?
We can be sure that they are working on something big to take control of the market from Android.
“Apple would never dilute one product to make another appear great.”
uh… imovie HD to current imovie version, and FCP
I can’t see Apple reducing the size of the iPhone, unless it is for another, smaller, model, while keeping the current size current as well.
I’d actually be in favor of a slightly thicker iPhone, with twice the battery life, and I would be strongly opposed to a smaller screen.
My wife reads ebooks on her iPhone, and I’ve considered getting her an iPad. Her birthday is just about a week too soon this year though for that. Perhaps for Christmas this year…
However, we both already have iPhones, and I don’t see either of us dropping them. We already pay ATT for our monthly service though, and see no need to pay them twice. Tethering makes a lot of sense for this.
Apple should make a deal with their providers so that any iPhone can automatically tether for iPad at no additional charge. While we’re at it, stop charging me for texts, when I supposedly have an unlimited data plan!
Either way, I definitely see the iPad becoming a huge hit, but I don’t think it will be replacing many iPhones.
This is complete bollocks! No way is Apple going to downsize the iPhone screen and perform a fragmentation of the iPhone iPod Touch market.
My predictions are correct 10% of the time.
@ lalit: I hardly think that makes him a jackass. The substance of his commentary–that the iPad success is not yet factored into AAPL’s stock price–remains valid. You [and Brau missed his point also] may disagree with his analysis, but at least he offers analysis. You, on the other hand……..
David Chu wrote: We can be sure that they are working on something big to take control of the market from Android.
Android has control of the market?!
Sorry, but it is just another also ran. Even if Android kept up the pace that it has, it wouldn’t pass the iPhone until 2012… and it won’t keep up the pace it has now. It is just too disjointed and isn’t even really like one platform (lack of upgradability, etc).
I just hyperventilated!!!
While I do agree the iPad will do well and I’m looking forward to getting mine.. This guy is smoking something if he really thinks Apple is going to reduce the iPhone screen because the iPad is popular.. It makes no sense at all. Umm.. Sorry but I’m not going to haul my phone and a iPad everywhere I go all the time.. Maybe they could have two versions.. Like the iPhone nano rumor that surfaces once and a while.. But if Apple doesn’t offer a iPhone with a screen at least as big as it is now in the future.. Then that’s NOT something to get excited about as a shareholder.. It’s a reason to consider selling.
I’d bet my left nut this never happens.
— Lance Armstrong