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Apple's Larger iPad Could Mean A Stronger Presence in the Workplace

By: Chris Ciaccia
Posted: 8/27/2014 12:21:00 PM
Referenced Stocks: AAPL;IBM

Apple (AAPL) is reported to be working on a larger iPad, one with a 12.9-inch screen, that could not only boost iPad sales overall, but boost the presence of the iPad in the workplace.

A larger iPad could give Apple a stronger presence in the workplace, part of the motivation behind signing a landmark agreement with IBM earlier this year, in which IBM agreed to develop business-centric apps for the iPhone and iPad. The deal will help boost the presence of the iPad in the enterprise market.

Apple CEO Tim Cook noted on Apple's most recent earnings call. "We think our partnership with IBM, providing a new generation of mobile enterprise applications, designed with iPad’s legendary ease of use and backed by IBM’s cloud services and data analytics will be one such catalyst for future iPad growth," Cook said on the call.

According to the report from Bloomberg, Apple will have 12.9-inch iPad ready for the first quarter of 2015.

Currently, Apple sells two versions of the iPad, a 9.7-inch version, known as the iPad Air, and a 7.85-inch version, known as the iPad mini.

As the tablet market has slowed down, Apple is looking for ways to keep and expand its market share, which is being impacted by Samsung, as well as other original equipment manufacturers (OEMs).

Apple has struggled with iPad sales over the last few quarters, with unit sales down 9% year-over-year in its latest fiscal quarter, to 13.3 million units. However, that is an improvement from the fiscal second quarter, when iPad units fell 16% year over year to 16.35 million.

In January of this year, Samsung unveiled four tablets aimed at the enterprise market, including three sizes (8.4-inch, 10.1-inch, and 12.2-inch) of the Galaxy Pro, as well as a 12.2-version of the Note Pro. These tablets allow enterprise users to do more with them than simply consuming content, including features such as WebEx optimization, and synching up to 20 tablets at a time.