Why a bigger Apple iPad could counter a potential Microsoft threat
Why Apple introducing a 12.9-inch iPad could affect the market (Part 2 of 7)
Microsoft claimed that its Surface Pro 3 tablet could replace both the iPad Air and MacBook Air
In the previous part of this series, we discussed a Bloomberg report that claimed that Apple (AAPL) could introduce a bigger, 12.9-inch iPad by next year. We also discussed how such a move would help Apple save itself from cannibalizing its own iPad sales through the bigger iPhone that Apple is expected to launch next month. Plus, this move would also help Apple overcome a potential threat from Microsoft (MSFT).
Earlier this year, Microsoft introduced the Surface Pro 3 tablet—its largest-ever tablet, with a screen size of 12 inches. Microsoft claimed this tablet could replace laptops, serving a two-in-one purpose as both a tablet and a laptop. During the launch event, Microsoft made a direct remark about Apple, claiming that the Surface Pro 3 could replace both the iPad Air and MacBook Air so that consumers need not carry two devices.
Microsoft’s share could increase in the tablet market at Apple’s expense
According to a report from IDC and as the chart above shows, Google’s (GOOG)(GOOGL) Android-based tablets could maintain their leadership position, with their shares declining slightly from 61% in 2013 to 59% in 2017. iPad share could also decline, but the major gainer would be Microsoft.
IDC predicts that Microsoft’s Windows-based tablets’ share could increase from 3% in 2013 to 10% in 2017, driven by Microsoft’s Surface tablet series.
Yet a bigger iPad could help Apple overcome this threat from Microsoft. If Apple manages to increase the iPad’s market share, it would help exchange-traded funds (or ETFs) like the iShares Dow Jones U.S. Technology ETF (IYW) and the Technology Select Sector SPDR ETF (XLK) , which have high exposure to Apple.
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