Analyst Slams Apple’s iPad – Believes the Tablet isn’t a ‘Must-Have’ Device

mehWhen Apple launched the iPad Air two weeks ago, reviews came flooding in all over the tech world that Apple’s newest tablet was the best the company had ever launched, and the best in the market so far. Even though the sentiment across the board was that the iPad Air is the best in its class, one analyst has responded with a resounding, “meh.”

According to Barrons, UBS analyst Steven Milunovich sent a note to investors that rated Apple in a Neutral category with a $540 price target on the company’s stock. His note included that he was disappointed by the sales of the iPad because it is not “on the same growth curve as the iPhone at a similar point since introduction.”

Milunovich believes that the tablet doesn’t have much of a place in the tech world. He noted that “smartphones are best at keeping people in contact with friends and family,” while the PC is best for productivity and work-related content. He wrote that tablets are good for entertainment but that content creation is the devices Achilles heel.

What Milunovich fails to remember is that, just over three years ago, tablets were nothing more than a failed device that no one wanted or knew what to do with. When Apple launched the iPad, it literally changed the landscape of personal computing. More and more, the average consumer is giving up home computers in exchange for the lighter, more mobile tablet. Most people don’t use their home computer for much more than reading email, browsing the Internet, and shopping for Christmas presents. The iPad succeeds on all of those points, and then some. Consumers are gradually pulling away from the full functioning desktop or laptop computer that they don’t even use a third of, and switching to tablets that fulfill their needs at a lower price and with less desktop space.

Milunovich’s opinion seems to be stuck in 2010.

[Via: BGR]

About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik

  • Bill McLaughlin

    Agreed (mostly). I have had three iPads since I ordered one on the very first day of the very first iPad and have found I use it less and less as time goes on in favor of “old fashioned” (but not old) desktop PCs with which I can get real tasks done quickly and efficiently. Tablets are nice toys and good for portable use but are cumbersome and slow for real tasks. It is all about human interface and at this time touch is simply not as functional or efficient as mouse/keyboard for the vast majority of tasks.

    Tablets have a place and are not going away but we are NOT in a “Post PC” era like so many Pundits have suggested. There is a need for both.

    As far as Apple goes, sell. They have shot their bolt. Now they are just struggling to stay current.

  • Thomas Pumphrey

    Not sure about the lower price either. There are plenty of laptops and desktops that are noticeably cheaper than an iPad air.

    • Lory Gil

      That is why I didn’t use “iPad Air” in that sentence. Low-priced tablets are definitely less expensive than low-price PCs.

  • Moreck

    Why would someone compare the tablet growth curve with that of smartphones? I suppose that some people will grab at whatever straws they can find to try to malign Apple’s success. It’s quite astounding, really, how easy it is to throw up two disparate statistics and watch the lemmings buy into it.

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