Apple launch proves firm has 'eye on the business market' - analyst
Context's Jeremy Davies claims Apple can make higher margin in enterprise
Apple's product launch last night proved the firm is keeping a close eye on the business space, according to Context analyst Jeremy Davies.
At a US event last night, Apple unveiled two new products: the iPhone SE - a 4in display device with a 12MP camera - and the 9.7in iPad Pro.
Davies said the event was "all about the phone", claiming the lower-cost iPhone SE will "open the floodgates" for existing iPhone 5 users looking to upgrade.
Last October, Apple's chief executive Tim Cook urged market watchers not to underestimate the $25bn (£17.6bn) enterprise business it has been quietly building, and boasted growth in the segment.
Context's Davies said that the launch of the new iPad will help Apple compete with Microsoft's Surface tablet.
"They are filling the gap they see in the range because the iPad Pro, which is 12in, is just ginormous," he said. "If you look at iPad sales, they've not been going well - and tablet sales in general - so the move to get more into the business space is a good one. They've got the choice of size. So pitching it as a Microsoft Surface alternative, which they are doing, I get the message."
In Apple's Q1, which ended 26 December 2015, the firm sold 16.1 million iPads compared with 21.4 million in the same quarter a year ago.
Last year ABI Research claimed that the tablet market is heading for a peak in 2016 and that the installed base would actually decline for the first time this year.
Context's Davies said with this as a backdrop, betting on iPads could be risky.
"They've got their eye on the business market - maybe the margins are better in the business market as opposed to the cut-throat consumer space," he said. "Then again, are they pinning their hopes on tablets being the next big thing? Probably not. In the tablet market overall, that wave is over.
"Tablets going forward will be used for specific vertical applications and portability. This is an homage to what they need to do on the business side, but the real story is the phone."