Apple Inc. (NASDAQ:AAPL) is expected to launch the iPad 5 later this month. The new iPads are expected to include a 64 bit architecture, which will enable a “greater array of enterprise app development and facilitate greater enterprise penetration over time, according to Deutsche Bank.
Deutsche Bank is cutting their estimates for PC growth as a result. The estimates for 2013 and 2014 PC shipments have been cut to negative 10% and negative 8%, respectively. Their previous estimates were negative 8% and negative 6%.
Here is what Chris Whitmore of Deutsche wrote:
We…expect growing [desktop] virtualization and iPad deployments in the enterprise to pressure corporate PC sales through 2014-15…We expect AAPL’s [Apple’s] iPad refresh to include 64 bit architecture, which should enable a greater array of enterprise App development and facilitate greater enterprise penetration over time.
In the near term, back to school PC demand appears relatively soft and recent new hardware releases (Haswell) had little impact spurring incremental demand. Furthermore, we believe the corporate upgrade cycle will peak in [second half of calendar year 2013] as corporates complete Win 7 transitions ahead of Microsoft’s ending support of XP in early 2014.
Over the holiday season, PC vendors will likely price ultrabooks at under $500 to respond to the new tablets.
Update: An earlier version of this article said that Apple will be announcing new iPads on the 15th. We reported the rumor before it was made official by Apple in the form of an event invitation. The official date is actually October 22nd.