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Gregory Pepin
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Gregory Pepin is a co-partner of a Wealth Management company in switzerland. He has a Master of Science degree in Finance and Actuary Science from HEC Lausanne (Switzerland). He also teaches Finance at the University of St. Joseph (Lebanon). Gregory is a strong believer of the Graham Theory that... More
  • The Ipad : It's a game changer, here is why ! 2 comments
    Jan 30, 2010 10:23 AM | about stocks: AAPL
    Some people do say that the Ipad isn't a game changer, they do have good argument to support their case :
    - It is a big Iphone nothing more nothing less
    - It cannot run two apps at the same time
    - It doesn't provide game changing feature for the user
    - It is just a Deluxe Netbook etc etc.

    My point of view on the Ipad is different, i do believe it is a game changer in the industry for direct and indirect reason.
    It is or has the potential to be a game changer for Education and Business man. Here is why :
    - You see many university that offers Ipod Touch and Iphones to their student in order to expand the concept of University 2.0. However, those two devices doesn't provide enough feature and comfort to be use as much as university might expect. Now with the Ipad, they finally have THE device to revolutionize education at every level from high school to university. We can now clearly argue in favor for the replacement of paper books toward electronic support through the Ipad. The device is big enough, has enough battery and offers enough capacity to allow schools to replace their classical books by Ipad. Student won't need to carry heavy books to classroom. An Ipad will be far enough. It will also ease the communication between student and school administration, a simple Application developed by the IT team of the school and deal done. I won't go too much into details but for example a student could be able to download right away all the books the professor advice to buy and can download all the exercise and PDF courses from his internal school apps etc etc. Also student won't have to carry all the time their computer to do keynote. The Ipad will be enough to make projection of their work. It has the clear potential to change the way education is given.
    - People like me that travels a lot due to their job, will love the Ipad for very simple reason. Many times we do quick trip where we pretty much only need a device to allow us to do a keynote, manage our emails and access to our calendar. Along with that, we would like to have the opportunity to modify only slightly our presentation if needed. Until now, we had to carry our computer for that, our smartphone (even the Iphone) wasn't enough to do the job. We needed the combination of our Laptop and smartphone. With the Ipad, we have the difference maker, we get pretty much the all in one device that does what we need during our jobs. It doesn't sound like a big thing but believe me, having the opportunity to just carry an Ipad and not your Laptop for your simple "presentation trip" is a dream, at least for me. I clearly see business man having an Ipad that would become the real mobile device for them. 

    Now, if you consider the Ipad just for home usage, i do agree it isn't a game changer. It is a amazing mobile device but not a game changer for home usage. Of course, it will make internet surf, email, and watch video easier and better then a simple smartphone or a laptop. However, we can admit it creates a new generation of game console in a way and if the "game side" of the Ipad expands very well, Nintendo and Sony will have to innovate in order to cover a potential gap here.

    On the indirect side, investor should see a game changer in the Ipad (as does the Industry i think) :
    - The Ipad is a clear device that could find a good representation for business man and student as i said above. Those two "niche market" are growth market over the long term. Student are buyers of tomorrow for their future family and business. Apple already had a good hand in this market with the Iphone and the Ipod but now with the Ipad they should be able to increase their position in the Student Market. That is very important because it has a very good chance to convert into long term customer and future growth. The business man market is also a great way to penetrate the Enterprise market with the Ipad. Right now, there is a clear Mac Bundle that could make his place in small and mid businesses at least with the Iphone the Ipad and the Macbook pro. It is potentially the best Enterprise offer for Mobile.
    - The Ipad is the first device using Apple Chip. That allows them to reduce the cost of their product but also increase the stability of their system since it is another piece of the hardware made in house. I don't see those chip in Laptop or Imacs but it wouldn't surprise me to see a new line of Apple Chip in the Iphone, the Ipod etc. What does this mean for investor and industry competitor ? Apple will be able to continue to keep a strong growth margin, a great quality in their product but at a lower price point for the consumer which brings more risk for the industry to lose market share toward Apple Product and more growth potential for Investor.

    Steve Jobs sent the message during the Ipad presentation : Apple is a Mobile device company. Except for the Computer line, they are developing the skill to be a vertical integrated Mobile device company and develop almost all the hardware in house. It means a lot in term of quality, growth margin and price target for consumer. It all started when they bough PA Semi Conductor a few years ago. I'm sure with their internal chip, they will find a way to develop a solid hardware solution that doesn't use too much battery and allow to run for example multiple apps at the same time without burning the battery life. It is just the beginning but all the other mobile device company probably should see more then a simple Ipad and should be very worry.


    I do believe that the Ipad is a game changer in a way and should please all Apple Investor because, as another seekingalpha authors said, it is another piece - a big one- to the AppleWorld Steve Jobs and Co. is building. This little device provide many direct and indirect message every investor and industry competitor should look at with more attention. It is just the beginning and the outcome might be far bigger then first anticipate for the industry and Apple Investors.

    I personally don't own Apple shares as i believe the stock will drop in February and march like it usually did historically. However, i do intend to build a big personal position in it. My family owns Apple Shares and My fund will also owns Apple shares very soon.




    Disclosure: Don't personally own Apple Shares, Family do owns and my fund will soon owns Apple Shares
    Stocks: AAPL
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Comments (2)
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  • davel
    , contributor
    Comments (3727) | Send Message
     
    Nice article thanks.

     

    I have not thought of these uses for the iPad(terrible name ).
    30 Jan 2010, 07:06 PM Reply Like
  • jeany
    , contributor
    Comments (53) | Send Message
     
    Hey, guy, I have found many featured Free iPad Games in this iPad Column (www.ifunia.com/ipad-co...)
    12 Apr 2010, 03:51 AM Reply Like
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