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. 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.

  2. 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.

  3. 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.

  4. @ 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……..

  5. 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).

  6. 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.

  7. estimates and use of the iPhone 4G as a MiFi-type device are all great, but there’s no way they’re decreasing screen size when competing devices (DROID, Nexus 1) have larger displays that maintain a similar overall device footprint.

  8. If Apple does reduce the screen size of a newer iPhone Nano, it will have the same pixel count to retain compatibility with the vast amount of existing iPhone software.

    Typing on an even smaller screen would not be easy unless it was only marginally smaller.

    Teathering, if implemented by AT&T should apply to the iPhone as well as the iPad so that an iPhone would not be needed to get a computer on the net via an iPad.

    – gws

  9. This guy must be drinking LSD laced Kool-Aid. There may be another smaller iPhone (my wife wants this), but the current iPhone screen size will definitely be maintained in the primary device. Once one experiences the iPad, the differences with the iPhone will be readily apparent, no need for a tiny screen. Also, I doubt we will se iPad to iPhone tethering any time soon.

  10. tethering? Yay , but will it happen?
    Who says u can do that anyway with the hardware as we currently know it to be. I know u can tether a laptop to an iPhone, but an iPad?

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