J.P. Morgan: Apple is leaving $63 billion on the table

“There’s been a changing of the guard at J.P. Morgan,” Philip Elmer-DeWitt reports for Fortune. “Long-time Apple analyst Mark Moskowitz is out. Taking his place is telecom analyst Rod Hall, who brings with him what he believes is a $63-billion idea.”

“Apple, he wrote in an inaugural note to clients Tuesday, basically owns the market for laptops priced above $1,000. It’s got an estimated 68% market share of the North American market, a 49% share in Western Europe and a 36% share globally,” P.E.D. reports. “But according to Hall, the sweet spot for laptops, as indicated by red rectangle in the attached chart, sits just below that price point: In the $500-to-$1,000 range, into which nearly 100 million laptops — 55% of the total market — shipped in 2013.”

P.E.D. reports, “Apple could make as much as a $63 billion a year in that market, Hall argues, if it would just put a keyboard on the iPad.”

Read more in the full article here.

MacDailyNews Take: Would you be interested in a hybrid Mac/iPad, the “MacPad?” Let us know in our MacDailyNews poll and in comments below.

41 Comments

  1. He forgets one important thing: There’s no profit in $500-$1,000 laptops, at least not laptops built with Apple’s standard of quality.

    And I don’t think a MacPad will ever come about, nor does Apple want it to. The current business model has people buying iPhones, iPads, and Macs.

    1. It’s simple, if there is no profit, you just make up for it in volume and low quality. The answer to capturing that extra 63 Billion dollars is just to transform into a crappy and compromised company. Just ask Dell how well that works.

          1. Kool-aid? Had I listened to the Wall Street “experts” over the last 11 years I’d have missed 4000% profits on AAPL, and I’d still be working for a living.

      1. Agree; there is no way to make a good hybrid — more costly device than just an iOS tablet — and still sell it in $500-1000 without it being “junk” — I mean at least on technical side, let alone ergonomic issues that every hybrid has.

        1. This guy clearly hasn’t entered the Apple field with any real knowledge. Those billions would be considerably curtailed by the fall, in higher profit Mac sales. Plus as we have been discussing elsewhere the iPad at present is sorely limited by its hidden file structure that limits it’s use as a real Mac replacement anyway. And at present that’s what Apple wants.

    1. And he doesn’t apparently see that they’ve been converging the two in the past few releases, so they’re not as far apart as he thinks. Especially for the majority of people.

    2. Exactly. Apple just needs to make sure the BlueTooth Keyboard setup is completely seamless and perhaps offer their own keyboard cover option.
      But permanently putting a keyboard on the iPad is a dopey idea only a person from Microsoft or Dell would consider.
      Apple could offer a cheaper MBA with lower SSD size IF they would finally increase the size of iCloud storage and make it a LOT cheaper. I really don’t understand why Apple hasn’t made iCloud a much better deal with $150 BILLION in the bank.

    3. Yep, that’s what I’ve got : a hand-me-down iPad 1, a Logitech bluetooth Keyboard with cover/stand, and a Wacom Bamboo stylus. Total cost about £200, and with some iWork and iLife apps, that’s a perfectly usable mobile setup, at least, for my purposes, and no need for a laptop.

  2. Whilst I have no opinion on this matter of money lying on the table, Aren’t people already attaching a keyboard to the iPad already?
    In any case, “What is the MacBook Air”?
    Like I said earlier, I have no opinion!

    1. Well, I have one you are welcome to use. It employs these elements:

      (1) Analyst asserts Apple is leaving $63 billion on the table

      (2) No one leaves $63 billion on the table. They snatch it up

      (3) Either Apple are deranged, or the analyst is

      Cast one’s lot with Apple, or with a random analyst newly arrived on the scene? Hum. So vexing a decision.

  3. My friend bought a Chromebook for his daughter and he said the worst part about it is the touch screen. He said you point to a spot of the screen and you either change a program or open one. I think a MacPad hybrid would be an awful idea.

  4. iOS and OS X are two different operating systems. Apple has yet to make iCloud work right. I don’t want them screwing up anything else until they completely fix what they have already started on. No need to recreate the list…

    I wish they would bring back the 17″ MBP and I don’t care if it has retina or is any thinner than my 2010 MBP, but I don’t want a smaller one. I would think a 17″ iPad that runs OS X would be very interesting. Or maybe one that can dual boot into OS X and/or iOS.

  5. Unfortunately, Mr. Elmer-DeWitt has it backwards… If Apple built a Apple quality snap on keyboard for the iPad, they would make a couple of million extra as other keyboard manufacturers suffered. BUT I’m guessing that those that buy cheap laptops already have iPads. These folks just would not buy the additional laptop. ASUS and others would suffer (not $63 billion worth).

  6. Another analyst with an idea that impresses no one but himself.

    An iPad with a keyboard is not the same as a laptop. If it were, I think a big chunk of his proposed market would be buying iPads and Logitech keyboards instead of cheap laptops.

    Many people who buy cheap laptops want cheap laptops. Apple does not make junk.

  7. I gave up talking to all the people that were so thrilled that they would be able to touch the screens of the upcoming PCs. They were completely sold on the concept of doing what Wolf Blitzer does on TV.

    What a gimmick!

  8. If there is one thing Apple knows and knows better than anyone it is the laptop market.

    I will bet Apple has spreadsheets/DBs showing how all sorts of laptop form factors would get priced for an Apple product all the way between the existing iPad and the MacBook.

    It is only a question of if there is enough profit, enough manufacturing space and it doesn’t adversely affect other Mac products.

  9. If there is an iPad or hybrid config. With mouse and keyboard, then I want an OS optimum with that, as well. So we are back to coping Microsoft’s approach, which we already know, sucks. Not that it’s unusable, it’s not optimum. So, you have MacBook Air, and iPad Air, two devices, two OSes, optimized for the masses, and priced accordingly.

    There is nothing valuable in the $500 – $1000 space that actually is any good. The problem is not Apple or any other vendor. The problem is build materials for the form factor. It’s a dead zone.

    1. Exactly. You have to start reducing the cost of every part, from the chassis to the power supply to the screen to the keyboard to the hard drive/SSD and pretty soon you have a Dell.

    2. The reason Microsoft’s hybrid failed is because Windows 8 is the worst operating system ever developed. I had the displeasure of trying to help a friend who had a laptop running it. It was the most frustrating thing I ever had to deal with in regards to using a computer.

      There’s not a manual in the world that could help with that mess of an OS. On the other hand, give me a laptop running OS X with a detachable monitor that auto switches to iOS and I’d definitely want one. The laptops monitor can double as an iPad. Make it easy to transfer data between the two environments, and I think you’d really have something.

      Microsoft’s attempt at this space failed because they went off on some crazy wild tangent with their crappy tiled interface. I can’t see how anyone could be productive with that heap of garbage.

      1. On the side if Microsoft, the tiled mess was also an attempt at not coping Apple. So there’s merit, even in a mess.

        So from what you say, if Apple could find a way to build it at the right price point, they have the right OS hybrid design that maximizes usability. Unless I am misunderstanding it.

        1. I’m in need of a new laptop, and I already own an iPad. If Apple offered a hybrid, I’d seriously consider pairing two devices down to one. OS X and iOS are already proven successes, so I don’t think they’d face the same failure Microsoft seems to be experiencing with its hybrid.

          The only reason people use Windows 8 is because it’s the only OS available on those cheap laptops people keep buying because they think they’re getting a great deal. Apple is the master of think different, but in a good way. Microsoft not so much. At least prior to 8, Windows was usable. Now it’s a worthless POS.

  10. MacPad? I would say nope. Nowadays people like to mix things up. They wanted a Mini Cooper, but yet prefer a more practical SUV. Mix the 2 you get an ugly Countryman just like a Ladyboy. A phone has its own value and same goes for tablet and Mac. Each of them taste and feel different. Let me ask a question here, you like to eat salad and you also like to eat spaghetti, did you ever mixed them in a plate? If yes, then sorry, Apple isn’t for you, because you are like a trash bin who accept trash. Therefore, I’ll suggest you to get a Samsung. Period.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.