Small, medium business to spend big on iPads in 2012

December 30, 2011

Steve Jobs famously declared that 2010 would be the year of the iPad and that came true big time. When he introduced the Apple’s second generation tablet, he likewise said 2011 would be the year of the iPad 2 and, even though the official tallies won’t be in for weeks, there’s no question how well that’s worked out. But, it seems that was all just a warm up.

As the dust settles on 2011, it’s widely expected that Apple will have sold around 40 million iPads with the vast majority ending up in the hands of consumers. The company has also tallied significant successes in business, with 85 percent of the Fortune 500 either testing or deploying iPads (i.e. SAP has already rolled out 13,000-plus units), the big news has yet to hit.

All of this as Hewlett-Packard’s TouchPad flamed out, RIM’s Playbook fizzled and Android tablets by the score failed to find favor with consumers. Yes, Kindle Fire has sold well, but that’s been limited to the final weeks of the year and no one’s suggesting the device can be used for work.

Thereupon, Fortune’s reporting fresh NPD data suggesting that small and medium businesses (SMBs), those with 1,000 or fewer employees, plan to spend big on tablets this year. Given the current state of affairs, Apple’s iPad will be the primary beneficiary.

“The iPad, just as it is in the consumer market, is synonymous for ‘Tablet’ in the business market, leaving Apple poised to take advantage of the increased spending intentions of these SMBs,” writes NPD analyst Stephen Baker. “NPD’s research shows that iPad purchase preference is higher among larger firms than smaller ones, which is an important indicator that Apple is gaining traction far outside its typical consumer space.”

      • 73 percent of SMB’s plan to purchase tablets in 2012
      — Up from 68% three months earlier

      • Over the next year SMBs plan to spend an average of $21,000

      • Among larger SMBs (501 to 999 employees), 89 percent plan to spend an average of $39,000

      • Smaller SMBs (fewer than 50 employees), 54 percent say they’ll shell out under $2,000

Who are we really talking about? Think of car and insurance salesman tired of years carrying a heavy laptop. Truck drivers and factory workers given the choice between a 10 pound hardened notebook and Apple’s tough n’ light tablet.

Alternately, think of the millions that work for themselves — bloggers, contractors, shop owners — that just can’t afford the weight or expense of a big notebook. This group includes my business — one employee — and I happily shed four or five pounds from my day pack in April 2010 and haven’t looked back…

Ready for an iPad?



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