Apple iPad OS – Pilgrim’s progress.

Apple is still pretty far from the holy land with iPad OS.

• Apple’s new iPad Pro OS goes some way towards improving the ability of the iPad to perform like a laptop but still falls pretty far short.
• iPad OS was launched at WWDC 2019 and while it looks like a fork of iOS but in reality, it is simply iOS with certain features enabled when the software detects that it is running on an iPad.
• This is crucial because Apple already has 4 distinct software platforms and the last thing it needs is a fifth.
• The complexity of managing platforms increases exponentially with the number supported, creating a strong incentive to keep the number as low as possible.
• The new features of iPad OS improve its ability to offer content creation tools but I find it still stops far short of what a laptop is capable of.
• This is for a number of reasons:
  • First, mouse support: Apple was very quiet about this in its keynote as while mice are now supported, it is a functionality designed for accessibility rather than a proper mouse.
  • USB C and Bluetooth mice are supported but their use is aimed at users who have difficulty using touch.
  • Consequently, the mouse support is simply the same as touch, rather than the addition of a highly accurate, multifunctional input tool.
  • Second, multi-tasking: Users can still only really use two apps at the same time rather than a laptop or MacBook where one can keep adding tasks until the device runs out of resources.
  • Third, full-fat Office: this is a staple of computers and while this is not enabled for the iPad, it is likely to keep the heavy Office users away.
  • Full-fat office has been enabled for ARM processors already with the Qualcomm powered Windows laptops, and so there is no theoretical reason why it could not be offered on the iPad.
• The net result is that while iPad OS takes the iPad further towards replacing the laptop, it is still very far short of doing so.
• It is possible that Apple remains wary of taking this all the way as it would be quite likely to cannibalise its existing MacBook business.
• However, I suspect that the potential upside from replacing millions of Windows laptops would more than make up for any loss of MacBook sales.
• Hence, I think that the iPad remains a content consumption device for now, but we are beginning to see signs of it eroding the bottom end of the laptop market.
• Softness in the smartphone market has weakened the valuation of Apple which makes it a much better place to invest as opposed to the very exciting but clearly overvalued new listings like Uber and Lyft.