New iPad 3 Dazzles, But Who Are the Winners and Losers?

Joel Anderson |

Apple, iPad, iPad 3, iPad3, Tech nuts everywhere have a shiny new toy to pine after. Apple revealed its new iPad 3 today, showing off a bushel of new features and perks that will no doubt put iPhiles a twitter with anticipation for the March 16 release date. But who are the big winners and big losers for Apple releasing a new iPad?

New iPad Offers New Features

The iPad 3 most likely won't disappoint big fans of the iPad and iPad 2 who have the disposable income to plop down $499 to $829 again for the newest model. The biggest upgrade comes in the form of its new screen, a high definition screen that offers much sharper resolution than the iPad 2. It's also the first iPad that can connect to 4G networks, offering speeds that are expected to be 10 times faster than the iPad 2 had on 3G networks. Other features included a 5-megapixel camera sensor, an improved Sketchbook Pro, and voice dictation.

Potential Winners and Losers

The list of potential winners and losers from the iPad 3 won't be entirely clear for years, but there are some companies that one can already speculate will be seriously affected. The first, and most obvious, would be Apple. If the hype surrounding the iPad 3 is anywhere near past models, Apple can expect to move millions of devices again and subsequently watch earnings soar. Apple sold 15.5 million iPads last quarter despite rumors of the upcoming release of the next model, if the iPad 3 can maintain or exceed that rate is should mean big things for the Cupertino, CA company.

A Post-PC World

Apple CEO Tim Cook, in his presentation, mentioned that Apple was trying to more into a "post-PC" world, pointing out that the company now offers three post-PC products in the iPhone, iPad, and iPod. Boasting that Apple has sold 315 million devices since last year, and 62 million in the last quarter alone, Cook strongly implied that the future of technology lies away from the traditional personal computer. This can't be good news for PC-makers like Hewlett-Packard (HPQ), Dell (DELL), Lenovo (LNVGY), and Acer (2353.TPE). Apple already controls 17 percent of the PC market if one include iPads, making it the industry leader.

Tablets, Tablets Everywhere and Only One that Seems to Matter

Potentially the biggest losers with the release of the iPad 3 are companies that are offering competing tablet devices. Companies that have tried to enter a marketplace Apple effectively created and then compete with the big dog, like Amazon (AMZN), Barnes & Noble (BKS) and Microsoft (MSFT), will most likely see their sales numbers take a hit as consumers flock towards Apple's new, top-of-the-line product. Only time will tell if other companies can ultimately erode this brand loyalty, but for the time being Apple appears poised to remain the undisputed leader of the pack.

If I Could Just Get a Signal

It's hard to say who will be the winners and losers in the telecom sector, but reacting to the increasing need for 4G among consumers is clearly the all-consuming issue facing most wireless providers. The battle to acquire the wireless spectrum necessary to transmit ever-increasing quantities of data has consumed carriers like AT&T (T), Verizon (VZ), and Sprint (S). AT&T's ill-fated effort to purchase T-Mobile from Deutsche Telekom (DTEGY) was primarily motivated by AT&T's desperate need for more spectrum, and T-Mobile stepped in recently to protest Verizon's efforts to purchase more spectrum from Comcast (CMCSA). The recent announcement that the Federal Government would be auctioning off more spectrum space could temporarily ease market pressures, but it appears as though Apple's iPads and iPhones have reached the point where they are defining the state of competition for entire other sectors.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
VGZ.WT.U:CA Vista Gold Corp. Warrants n/a n/a n/a 0
AAPL Apple Inc. 109.11 -0.79 -0.72 34,331,042
S Sprint Corporation 8.05 0.07 0.88 17,368,282
BKS Barnes & Noble Inc. 12.60 0.40 3.28 493,188
AMZN Amazon.com Inc. 759.36 19.02 2.57 4,315,906
VZ Verizon Communications Inc. 49.75 -0.06 -0.12 13,074,713
HPQ HP Inc. 15.55 0.43 2.84 11,538,522
T AT&T Inc. 38.63 0.02 0.05 20,773,441
MSFT Microsoft Corporation 60.22 0.97 1.64 23,553,138
CMCSA Comcast Corporation Class A Common Stock 68.68 -0.10 -0.15 9,845,644

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