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Is the PC Dead?

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  • Description

    Morningstar senior stock analyst Michael Holt on whether PC makers can compete with iPad.

  • Duration 3:37
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Well everybody here's the question at Whitney third edition of Apple's iPad coming we believe we're wondering here is the PC dead.

What check out this chart here's a story of -- -- shares pretty much flat on 27%.

In the last five years meanwhile Apple's stock up a whopping 470%.

Michael -- senior stock analyst at Morningstar -- thoughts.

Can the PC makers even compete with let's become the Blockbuster that -- the -- The iPad is certainly a headwind for the PC makers but the PC is anything but -- what we really think about tablets is that there.

They dampened that growth in the PC market so it is a big problem is big challenge -- when you look at that those stock charts you see that they're coming from very different.

Starting points does a lot of challenges in front of it and apple has really done well but.

The PC it is not dead because its they're not perfect substitute is where we really see the challenges it.

First PC now -- the first device and house I was still going to be -- -- -- PC but what happens on that second device and they're devised that's where the tablets can cannibalize more than PC market.

Okay -- -- a couple of stocks that are in your coverage universe Dell and Hewlett-Packard's obviously you gotta watch these companies.

Very closely as well as as an -- -- -- of the stock you covered and -- to your point 2011 yes PCs -- -- continued to outsell tablet six to one.

But Tim Cook.

The CEO and several analysts have now said they believe by 2017.

The tablets -- outsell the PC is that too soon of a timeframe in your opinion since you cover about various.

I think that's certainly possible but.

Again that PCs not going away so if we -- five years down the road ten years down the road it's quite possible that that the market for tablets is larger than the market for PCs but that doesn't mean the market for PCs is going away.

Isn't it doesn't seventeen is it is a possibility of -- -- decided -- -- -- looking at what -- about the stock of apple a lot of question marks about whether or not this -- continue to go higher unit.

Steve Jobs who died in October -- lot of question marks about whether or not that the tablet is cannibalizing.

On the map.

What do you think about the stock right now we're 534 -- you say 560 where we where we cut the top off on this company.

Well based on what we're seeing from apple we think it's worth 568 could trade higher than that but I think there are some pretty big questions.

When you look down the road five years down the road.

How how locked in -- their users going to be because you know two years ago is pretty easy Fraser to switch away from an iPhone today it's getting a little more difficult is that more their data and -- cloud and they're using more of that applications that they purchase is -- more inconvenient.

Five years are now have they developed enough with Syria and I clouded -- -- have a thousand little posting news that make you not want to go to an android device even if even if apple drops the -- on a design cycle.

Well I think -- program was on the from the competitors perspective Amazon seems to be the closest and we now have with a candle fire which is a lot cheaper it's only entered on nine dollars.

That -- -- some in the could potentially -- apple run yesterday out.

Definitely and we see good thanks for that they -- -- fire and and you even more so just a general university android tablets now they've been slow to get started here and we saw that on the phone -- -- but if you look at the amount of phones being sold every day sex -- more android device is being put out there then then iPhone.

Then IOS devices and the same thing could happen down the road is as -- develops as a tablet operating system.

Michael holt senior stock analyst at Morningstar.

It is going to be a fascinating event to watch thank you very much we appreciate you participating.

We now have twenty laments to governor buddy.

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