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Apple suppliers reap iPad 2 benefits, positive news expected to continue

post #1 of 8
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Overseas suppliers for Apple products saw a surge in sales in the month of March, as demand for the iPad 2 created the need for a steady supply of components.

Sales for Apple touch panel supplier Wintek increased 40 percent month over month, well more than the average 16 percent increase Wintek has seen in March in years past. Analyst Brian White with Ticonderoga Securities said Wintek's success helps to give an indication of how strong the debut for the iPad 2 has been.

"We believe Wintek's March sales surge highlights the strong ramp for the iPad 2, and we expect to get more details from the Apple supply chain over the next week as monthly sales from TPK and other suppliers are released," White wrote.

The analyst has predicted that Apple will sell 27.4 million iPads in the company's 2011 fiscal year, growing even more to 37.5 million in fiscal year 2012. But he said Wintek's strong performance in March is yet another indication that those numbers are "very conservative."

But White also cautioned that investors should note that the iPad 2 launched in the U.S. nearly a month before the first-generation tablet went on sale last April, which likely accounts for some of the uncharacteristic growth. In addition, it Wintek's market share of iPad 2 components remains unknown, and the total could be more or less than last year's model.

Still, White expects positive news surrounding the iPad 2 to continue, particularly with the recent launch of the iPad 2 in 25 new countries, and debuts in Hong Kong, Korea, Singapore and other countries slated for April.

"Essentially, the iPad 2 was available in 26 countries before the end of March this year versus 19 countries for the iPad 1 by the end of July 2010, and 25 countries by the end of September 2010," he said. "We believe the iPad 2 momentum at the end of March positions Apple well to benefit from a healthy uptick in demand for the iPad 2 in the June quarter.

"Given the continued iPad 2 stock-outs around the world, we expect the news flow surrounding the iPad 2 to remain positive over the next several weeks."

Apple has not yet released sales figures for the iPad 2, leaving investors to look for answers in other places, such as component suppliers. But Apple will reveal its iPad 2 sales for the second quarter of fiscal 2011 during its earnings call scheduled for April 20. The call will take place at its standard time of 5 p.m. Eastern, 2 p.m. Pacific.
post #2 of 8
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Originally Posted by AppleInsider View Post


Apple has not yet released sales figures for the iPad 2, leaving investors to look for answers in other places, such as component suppliers. But Apple will reveal its iPad 2 sales for the second quarter of fiscal 2011 during its earnings call scheduled for April 20. The call will take place at its standard time of 5 p.m. Eastern, 2 p.m. Pacific.

It is quite possible that, when it gives its quarterly report, Apple will provide combined iPad sales but not break them down into figures for iPad 1 versus iPad 2.

Thompson
post #3 of 8
When unit sales are announced, I'd be cautious about using those figures to make projections for the remainder of the calendar year. I've been surprised at how quickly competitors have made price adjustments, with both Samsung and Asus already coming in under Apple's cheapest model. And the Asus is particularly price-aggressive, with units already launching in Europe. Their $400 EeePad will be on US shelves very soon according to information posted at Best Buy. Real competition looks like it may arrive a little sooner than originally anticipated. Whether any of them actually take any market from the iPad is still a huge question, but at least some percentage of potential buyers would be expected to opt for the lower priced models IMO, no matter whether Android, WM7 or iOS. I'd wager most consumers really don't know the differences.
melior diabolus quem scies
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melior diabolus quem scies
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post #4 of 8
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Originally Posted by Gatorguy View Post

When unit sales are announced, I'd be cautious about using those figures to make projections for the remainder of the calendar year. I've been surprised at how quickly competitors have made price adjustments, with both Samsung and Asus already coming in under Apple's cheapest model. And the Asus is particularly price-aggressive, with units already launching in Europe. Their $400 EeePad will be on US shelves very soon according to information posted at Best Buy. Real competition looks like it may arrive a little sooner than originally anticipated. Whether any of them actually take any market from the iPad is still a huge question, but at least some percentage of potential buyers would be expected to opt for the lower priced models IMO, no matter whether Android, WM7 or iOS. I'd wager most consumers really don't know the differences.

I disagree, for the same reason why the iPod is THE mp3 player, I think competition will among Apple's various iPad models and competitors will always just be the non-Apple choice.

Tablets just aren't that useful without the App Store.
post #5 of 8
Quote:
Originally Posted by Gatorguy View Post

When unit sales are announced, I'd be cautious about using those figures to make projections for the remainder of the calendar year. I've been surprised at how quickly competitors have made price adjustments, with both Samsung and Asus already coming in under Apple's cheapest model. And the Asus is particularly price-aggressive, with units already launching in Europe. Their $400 EeePad will be on US shelves very soon according to information posted at Best Buy. Real competition looks like it may arrive a little sooner than originally anticipated. Whether any of them actually take any market from the iPad is still a huge question, but at least some percentage of potential buyers would be expected to opt for the lower priced models IMO, no matter whether Android, WM7 or iOS. I'd wager most consumers really don't know the differences.

This market is not a zero sum game. Apple can (and probably will) ultimately lose market share, but it's going to continue growing sales at an incredible pace. The market for tablets will simply grow faster than Apple's share will shrink.

My conclusion is that you can probably extrapolate this excellent sales performance through the rest of the year. If you do that, you will probably have a conservative estimate.
post #6 of 8
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Originally Posted by thompr View Post

My conclusion is that you can probably extrapolate this excellent sales performance through the rest of the year. If you do that, you will probably have a conservative estimate.

Agreed, especially given that the tight supply issue will be solved over time, and more international market launches later the year.
post #7 of 8
Quote:
Originally Posted by alienzed View Post

...

Tablets just aren't that useful without the App Store.

I may be wrong, but I think 99% of what everyone wants tablets for is web browsing, email, [video]chat, picture and video viewing -- usually with built-in clients -- and games with comparable availability across platforms. We'll have to wait and see if any competitor can provide experience in those areas coming anywhere close to iPad2...
post #8 of 8
Spreading the wealth. Good for everyone.
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