Apple Inc. isn’t exactly soaring on the news of the iPad 2, and many investors want to know why.
“In covering these events for the past eight years, this is typical,” Gene Munster, a senior research analyst at Piper Jaffray, told Bloomberg this morning.Munster said that there is generally a lot of hype for Apple products leading up to their unveilings, but when the big moment finally comes, investor response is underwhelming.
“It’s shortsightedness” on the part of the investors, Munster said, which is why the stock isn’t up more than its meager 1.51% increase.
“It’s evolutionary, not revolutionary,” Munster said of the iPad 2. “It’s one of these things with Apple products – small, incremental changes that have a big impact,” Munster said, adding that the fact that it’s a “2” product (a new version) is also a selling point.
Munster does not believe that consumers will have much interest in Motorola’s Xoom or Research in Motion’s PlayBook.
“If you’re a [computer] geek, you might have more of an interest in those other tablets,” Munster said. “For the mainstream consumer, Apple is still the best.”
When asked why Apple’s competitors can’t undercut the $499 base price of the iPad 2, Munster said that it’s because Apple uses its balance sheet to secure components at a lower price. “We saw [that] with the iPhone,” he said.