Analyst: Apple’s iPad Needs More Retail Usage
Could Apple’s (NASDAQ:AAPL) flagging iPad sales be revived in the corporate market? Barclays analyst Ben Reitzes believes that an increased emphasis on iPad usage for retail and point-of-sale purposes could help boost the recently declining sales of Apple’s tablet, reports Barron’s.
Apple saw a decline in its iPad sales for the first time according to its recently released third-quarter results. The Cupertino-based company sold 14.6 million iPads during the June quarter, which was 2.4 million less than the amount it sold in the same quarter last year.
However, the year-over-year decline in iPad sales is hardly surprising considering the fact that Apple released a new iteration of its tablet in March of last year. Regardless, Reitzes would like to see more “use cases” for Apple’s iPad.
After observing the use of iPads in “restaurants and waiting areas” of LaGuardia Airport, Reitzes noted via Barron’s that iPads could be utilized in all types of venues, “from restaurants to theme parks to sports venues to airplanes to customer service, in order to sell more products and enhance worker productivity.”
Although Reitzes’ suggestion makes perfect sense, it is hardly new. Apple’s iPad has already started to make inroads in the retail point-of-sale business. Mobile payment company Square recently began selling an iPad-based physical point-of-sale system for business owners at various Apple Stores.
If Reitzes had interacted with any pilots at LaGuardia, he may have observed that many airline pilots have already replaced traditional flight kitbags full of heavy paper-based charts and manuals with iPads. American Airlines (AAMRQ) has been using Apple’s tablet devices on its Boeing (NYSE:BA) 777s since 2011, reports the Wall Street Journal.
As CFO Peter Oppenheimer noted during Apple’s third quarter earnings call, “In every major industry around the world companies are developing, deploying and supporting apps for iPad.” According to Barron’s, Reitzes has a $525 price target and an Overweight rating on Apple shares.
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