February 28, 2011

JPMorgan Ups Ante On Tablet Market

JPMorgan Securities announced recently its expectations for the tablet market through the year, while reports of the brokerage said it is considering buying a substantial stake in microblogging site Twitter.

The firm said that it sees steep adoption rates and an increasing number of available devices driving tablet market growth.

It also said that tablet market growth will be spurred by improved operating system platforms and penetration of enterprise and education customer verticals.

"We expect tablets to have an increasingly negative impact on PC shipments," analyst Mark Moskowitz said. "More than 35 percent of tablets sold in 2012 will be cannibalistic, particularly as relates to netbooks and notebooks," he told Reuters.

JPMorgan has raised its 2011 tablet revenue estimates to $26.1 billion from $24.9 billion and 2012 estimates to $35.2 billion from $34.1 billion.

While its positive expectations reigns the headlines of the tablet market on Monday, the Financial Times (FT) reported on Sunday that the company is considering getting its feet wet in the social networking world.

The report by the FT said JPMorgan's Digital Growth fund hopes to acquire 10 percent of the microblogging site for $450 million, which would value the company at $4.5 billion.

The brokerage said in a regulatory filing on Friday that it had raised $1.22 billion for the Digital Growth fund.

The FT said the fund eventually plans to raise a total of $1.3 billion for a maximum of 480 investors.

The report said that JPMorgan hopes to invest a third of the fund in another private Internet company like online gaming company Zynga or telephony company Skype.

The FT said JPMorgan expects over $13 million in commissions from the fund.


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