iPad sales to prop up revenue as Apple readies new products, report says

Posted:
in iPad edited January 2014
An AAPL investor report released on Tuesday estimates that the iPad will carry a healthy portion of sales over the next two quarters while the company prepares to launch a next-generation handset and new laptop models.

Barclays Equity Research believes Apple's market cap, which stands at $531.28B as of Tuesday, will see further gains as the company continues to pump profits from the PC market with its iPad product line.

The investment bank left its AAPL price target unchanged at $750, giving the stock an overweight rating due to strong iPad and iPhone demand, Mac gains and international expansion. As in previous years, Apple's staggered new product launch cycle will ward off stagnation and keep demand high for its lucrative device lineup.

Spearheading the next two quarters will be the iPad, which now includes an "entry-level" device in the iPad 2 carry-over from 2011. Estimates see Apple shipping 14.2 million iPad unties in the second quarter of the 2012 calendar year which represents quarter-on-quarter growth of 20 percent.

Going further, the report sees upside benefits from a full three month window of availability for the new iPad and estimates that the third quarter will bring a 12 percent increase in shipments or 15.9 million units. In total, the firm expects iPad sales of 57.2 million for fiscal 2012 and 78.5 million for 2013, up 77 percent and 37 percent year-to-year, respectively.

In a separate preliminary first quarter 2012 tablet shipment report from IDC it was estimated that Apple took a 68 percent share of worldwide tablet shipments totaling 17.4 million units, a nearly 16 percent gain from the 2011 holiday quarter.

Once thought to be a minor threat to Apple's iOS tablet, Amazon's reasonably-priced Android-based Kindle Fire seems to have lost its teeth after dropping from a 16.8 percent share of the market at the end of 2011 to just 4 percent in the first quarter of 2012.

Amazon Top Sellers
While the Kindle Fire continues to reign on Amazon's own online store, the iPad has taken 68% of the worldwide tablet market share. | Source: Barclays


"We continue to believe that the iPad will cannibalize PC sales and do not believe that Apple needs to launch a compromised ?hybrid? product of a Mac with a detachable screen," writes Barclays Capital analyst Ben Reitzes. "We believe iPad users will increasingly ?dock? iPads to keyboards."

Reitzes is referring to recent online murmurs that Apple may be looking to create a competing product to new Windows 8 devices that merge tablet and laptop form factors. The rumors were shot down by Apple CEO Tim Cook, who said during the company's second quarter earnings conference call that while such product was possible, the compromises would outweigh the benefits.

"You can converge a toaster and a refrigerator, but you know, those things are probably not going to be pleasing to the user," Cook said.

On the topic of Windows-based laptops, Barclays believes that expected upcoming refreshes of Apple's MacBook product lines, combined with the summer release of OS X Mountain Lion, will counter any perceived threat from so-called Ultrabooks being pushed by Intel.

"We are very upbeat about the prospects for new MacBook Pros and iMacs to be launched this June quarter ? and even more optimistic about a new line of MacBook Airs to likely ship in the September quarter at more attractive price points," Reitzes writes.

Comments

  • Reply 1 of 13
    capnbobcapnbob Posts: 388member


    The massive irony of that graphic from Amazon is that they are not even an authorized reseller of the iPad and all those entries are from other 3rd parties reselling iPads all above list price. Notice the prices - all at or above list - most of them are probably refurbs so people are working the arbitrage via Amazon (just like they do on ebay).


     


    If the vastly more expensive, above list price, dodgy sourced iPads can get that high up the Amazon sales chart, no-one else has a chance!


     


    Maybe they should rename the Fire, the ember...

     

  • Reply 2 of 13
    shaun, ukshaun, uk Posts: 1,050member


    Another day another pointless analyst report.


     


    Isn't there any news and/or rumours about the new MacBooks? It's all gone very quiet.


     


    I presume there won't be an announcement ahead of WWDC given that it's only a few weeks away. I hope they reveal the new MBPs then and maybe new iMacs.

     

  • Reply 3 of 13
    dickprinterdickprinter Posts: 1,060member

    Quote:

    Originally Posted by AppleInsider View Post





    "We continue to believe that the iPad will cannibalize PC sales and do not believe that Apple needs to launch a compromised ?hybrid? product of a Mac with a detachable screen," writes Barclays Capital analyst Ben Reitzes.


     


     


    HUH? Detachable screen? Where the F did that come from?

  • Reply 4 of 13
    tallest skiltallest skil Posts: 43,388member

    Quote:

    Originally Posted by Dickprinter View Post

    HUH? Detachable screen? Where the F did that come from?


     


    The formatting is weird, here:


     


    "We… …do not believe that Apple needs to launch a… hybrid product… [in the form] of a Mac with a detachable screen."

  • Reply 5 of 13
    gazoobeegazoobee Posts: 3,754member

    Quote:

    Originally Posted by Capnbob View Post


    The massive irony of that graphic from Amazon is that they are not even an authorized reseller of the iPad and all those entries are from other 3rd parties reselling iPads all above list price. Notice the prices - all at or above list - most of them are probably refurbs so people are working the arbitrage via Amazon (just like they do on ebay).


     


    If the vastly more expensive, above list price, dodgy sourced iPads can get that high up the Amazon sales chart, no-one else has a chance!


     


    Maybe they should rename the Fire, the ember...

     



     


    I can say with great authority and experience from working in both the publishing and retail business that those lists of "top sellers" and "best sellers" are 100% rigged and always have been.  They often have no relation to actual sales at all.  The reasons and the intricacies of how and why are not worth the couple of pages it would take to explain, but you can pretty much count on any statistics like that published by Amazon to be virtually useless in determining anything at all.  


     


    There are very strong indications for example, (if you read other sources than Amazon itself), that Kindle sales have taken a nose dive lately.  I've seen figures as high as a 75% reduction in sales volume.  Furthermore, the Fire hasn't taken up the slack and is only selling moderately so far.  Yet on the chart, both Kindles and Fires are outselling iPads.  


     


    That chart is total kaka.  One should be especially suspicious of such figures from a company as secretive as Amazon.  


    They rarely release any actual sales information even to their investors.  It's a long running complaint from those that want to invest with them. 

  • Reply 6 of 13
    island hermitisland hermit Posts: 6,217member

    Quote:

    Originally Posted by AppleInsider View Post



    "We continue to believe that the iPad will cannibalize PC sales and do not believe that Apple needs to launch a compromised ?hybrid? product of a Mac with a detachable screen," writes Barclays Capital analyst Ben Reitzes. "We believe iPad users will increasingly ?dock? iPads to keyboards."


     


    There's that "cannibalize" word again... misused as always.

  • Reply 7 of 13
    jragostajragosta Posts: 10,473member
    "We continue to believe that the iPad will cannibalize PC sales and do not believe that Apple needs to launch a compromised ?hybrid? product of a Mac with a detachable screen," writes Barclays Capital analyst Ben Reitzes.

    That's a pretty safe bet - since no one ever proposed that Apple should offer a Mac with a detachable screen.

    In related news, we do not believe that Apple needs to launch a compromised hybrid product which is a gerbil powered iPad. We also do not believe that Apple needs to launch a hybrid product which is an A6-powered space shuttle.
  • Reply 8 of 13
    dickprinterdickprinter Posts: 1,060member

    Quote:

    Originally Posted by Tallest Skil View Post


     


    The formatting is weird, here:


     


    "We… …do not believe that Apple needs to launch a… hybrid product… [in the form] of a Mac with a detachable screen."



     


    No weird formatting and I did not misunderstand.....who ever said something about anything Apple/Mac with a detachable screen? That hasn't even been a Digitimes rumor......yet.

  • Reply 9 of 13
    constable odoconstable odo Posts: 1,041member


    I sure hope the iPad keeps spanking PC desktop sales even after the introduction of Windows 8.  That would be a real belly buster.  It would be funny if consumers continued to choose the iPad over Windows Ultrabooks but I don't think that's likely because those Ultrabooks would seem to be pretty useful with good battery life.

  • Reply 10 of 13
    slang4artslang4art Posts: 376member

    Quote:

    Originally Posted by island hermit View Post


     


    There's that "cannibalize" word again... misused as always.



    Hey, it sounds cool and makes you appear to be in the know.

  • Reply 11 of 13
    slang4artslang4art Posts: 376member

    Quote:

    Originally Posted by Constable Odo View Post


    I sure hope the iPad keeps spanking PC desktop sales even after the introduction of Windows 8.  That would be a real belly buster.  It would be funny if consumers continued to choose the iPad over Windows Ultrabooks but I don't think that's likely because those Ultrabooks would seem to be pretty useful with good battery life.



    iPad is only getting started.

  • Reply 12 of 13
    rmm21rmm21 Posts: 29member


    This is another deflection piece from the media to steer the humble masses away from the obvious. Cook's outrageous statement concerning a toaster refrigerator meld is mere marketing smokescreen. Apple will sell a Macbook Air-like laptop with a large detachable or convertible screen as per the patent they had for just such a scenario that was "discovered" last year. This hybrid will have a convergent OS where the iOS part is used when the screen is detached to preserve battery life. Consider it the deluxe version of the Macbook Air that will be launched several years from now after the iPad buzz has settled down.  

  • Reply 13 of 13
    tallest skiltallest skil Posts: 43,388member

    Quote:

    Originally Posted by rmm21 View Post

    Apple will sell a Macbook Air-like laptop with a large detachable or convertible screen as per the patent they had for just such a scenario that was "discovered" last year.


     


    No, that's not going to happen by any stretch of the imagination.


     


    Quote:


    This hybrid will have a convergent OS where the iOS part is used when the screen is detached to preserve battery life. Consider it the deluxe version of the Macbook Air that will be launched several years from now after the iPad buzz has settled down.  



     


    OS X is OS X. iOS is iOS. If you touch it, it's not OS X. If you mouse it, it's not iOS.

Sign In or Register to comment.