Apple Inc’s much-awaited tablet computer, called the iPad, yesterday failed to impress local tech analysts, who said they expected the new gadget to make limited contributions to the nation’s component suppliers.
“It’s a big disappointment to me personally,” Jonah Cheng (程正樺), an executive director at UBS Securities Pte Ltd’s (瑞銀證券) Taipei Branch, told reporters.
Despite Apple’s claim that the 9.7-inch touchscreen tablet computer could be a “do-everything” media gadget, Cheng said the iPad doesn’t function as well as a notebook, a smartphone or an e-reader, and thus, is unlikely to trigger a replacement wave.
The tablet PC doesn’t run applications such as Microsoft’s Word and Excel, which makes it inconvenient for notebook users, he said.
Neither can it be used for making telephone calls, he said.
Its 10 hours of battery life is no match for that of Amazon’s Kindle, which lasts two weeks, he said.
Given these drawbacks, Cheng said Taiwanese component suppliers were likely to see a limited boost from new orders for the new gadget.
Steven Tseng (曾緒良), an analyst on downstream electronics at RBS Asia Ltd’s Taipei Branch, was not as pessimistic, although he holds a neutral to slightly negative view toward the iPad.
“I am slightly disappointed probably because of the hyped expectations,” Tseng said by telephone yesterday, adding that he still expected Apple to do better when it introduces next-generation iPads.
A potential upside may emerge if the tablet PC market takes off and other computer makers join the battle, Tseng said.
William Dong (董成康), a managing director at UBS Securities, agreed, saying the launch of new electronics products could stir up market sentiment and in the long run, push for new technology developments.
With regard to the local stock market’s performance, Dong said yesterday he expected the TAIEX to see “healthy corrections” in the coming months after a strong rally last year.
Investors should turn cautious and defensive, he said.
Dong said the market correction could continue until the end of the second quarter, testing a low price-to-book ratio of around 1.2x from the current ratio of 1.8x.
Hardware manufacturers such as Hon Hai Precision Industry Co (鴻海精密), Chunghwa Telecom Co (中華電信) and Cathay Financial Holding Co (國泰金控) remained UBS’ top picks, he said.
Market momentum will gather steam when inventory build materializes to meet a pickup in end demand, Dong said.
Also See: Nintendo head unimpressed by iPad
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