When 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.