Readers who received a shiny new iPad for Christmas might be
disappointed to learn that the device could be upstaged in just a
According to various sources, Apple (NASDAQ:
) will release the follow up to its widely successful iPad in
dubs the device the "iPad 5," although this is likely not a name
Apple would settle on, given its recent decision to label the
third and fourth version of the iPad simply "iPad."
According to the reports, the fifth iteration of the iPad will
be up to 4 mm shorter, 17 mm narrower and 2 mm thinner than the
fourth iPad. As a result, it will also be lighter.
Shares of Apple dropped on Wednesday, falling over one percent
to trade near $515. The stock is still notably off its September
high above $700 per share.
An iPad refresh could prove to be bullish for the stock. With
each successive iteration of the device, Apple has been able to
sell more. Recently, the company
sold three million iPads
within three days of the release of the iPad 4, (although that
figure also included sales of the iPad Mini) double the amount
sold following the release of the third iPad. In other words,
demand for iPads has moved upward rapidly and will likely
continue when the iPad 5 is released.
Ultimately, however, demand concerns regarding the iPhone 5
may trump hope for another iPad. Several analysts have speculated
that sales would fall short, as suppliers indicated that orders
have been light.
Other concerns include declining interest in iPod devices,
increased competition from Samsung's Galaxy smartphones and
declining market share in the tablet space.
Despite these concerns and the recent selloff, shares remain
higher on the year. Year-to-date, shares of Apple are up over 25
On a pure numbers basis, Apple's recent net income was $41.73
billion -- nearly quadruple that of Google (NASDAQ:
Apple's stock may see a bounce following the release of the
next iPad. However, whether the company can continue to perform
in the long run will depend on its ability to fight off
increasing competition for its products from the likes of Google
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