Although Apple's new iPad may succeed as a consumer device -- challenging Netbooks and book readers including Amazon's Kindle -- it will find it harder to penetrate the enterprise, according to Irwin Lazar, Vice President, Communications and Collaboration Research at Nemertes Research.

Apple's (NASDAQ:AAPL) new iPad features a multitouch screen, the A4 custom CPU, 802.11n WiFi and optional 3G connectivity. Bridging the gap between an iPhone and a MacBook, iPad demonstrates that the lines between smartphone, netbook and laptop are erased.

iPad's greatest weakness: it runs the iPhone's OS, giving it access to hundreds of thousands of iPhone applications but failing to support multitasking or most key enterprise-grade MacOS applications. With the addition of software like Citrix's (NASDAQ:CTXS) Receiver, though, the iPad could make a compelling thin client for mobile worker applications such as Computerized Physician Order Entry (CPOE.

Market Impacts

• Enterprise: It is an interesting device for some mobile applications or as a thin client, but not ready to replace laptops or most Netbooks.
• Vendors: If you rejected development of enterprise software on the iPhone, reconsider, targeting iPad instead.
• Investors: Apple will be challenging Netbook manufacturers including Hewlett-Packard (NYSE:HPQ), ASUSTek (TPE:2357) and Dell (NASDAQ:DELL), for consumer/entertainment market share, and may erode their enterprise sales later.

About Nemertes Research

Nemertes Research is an independent research firm that specializes in quantifying the business impact of technology. We help clients optimize their IT investments by providing objective, real-world insight.

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