Apple to build 8-10M iPads in 2010, begins shipping preorders
As Apple began shipping the first iPads to those who first preordered, a new report on Monday said the company plans to ship between 8 million and 10 million devices in the 2010 calendar year.
In a new note to investors, analyst Katy Huberty with Morgan Stanley said suppliers for the iPad have currently forecast 2.5 million iPads to be shipped in the first three months of availability, from March to May. In all, Apple will ship between 8 million and 10 million by the end of 2010, suppliers said -- a number much higher than the previous expectation of 5 million.
Huberty said the upward revisions to iPad build rates "point to strong initial pre-orders." Every one million iPads shipped equates to roughly 25 cents of earnings per share. A strong iPad debut, she said, sets up for "significant earnings upside."
The consensus on Wall Street, she said, is that Apple will sell between 3 million and 4 million iPads in the product's first year. But supplier shipping projections suggest the Cupertino, Calif., company will exceed market expectations.
"Near-term, we believe iPad will target the sizeable sub-$800 consumer notebook market, which equates to 30 million units in the U.S. and 120 million units globally," the report said. "Medium-term, newly introduced content (books, magazines, video) and iPad-optimized apps could broaden the addressable market and strengthen iPad sales momentum later this year."
Huberty said she believes the market is currently under-appreciating the long-term demand for the iPhone and iPad. She projects that Apple could have more than a 10 percent share of global handset sales, and 25 percent of the smartphone market, in the next 3 to 4 years.
Morgan Stanley has maintained its overweight rating for AAPL stock, with a price target of $250.
Also Monday, Apple began shipping iPads for those who placed the first preorders. Wi-Fi-only models have been shipped via UPS and are due to be delivered in the U.S. on April 3.
Apple has sold out of its initial run of iPad preorders. As of Saturday, those who attempted to prepurchase were informed that their device will ship by April 12.
Strong demand for iPad accessories has also caused delays. Those who didn't buy in on the first run of preorders for the keyboard dock and power adapter will now have to wait until May.
When it began accepting preorders earlier this month, Apple limited purchases to two per person. The company also turned down volume orders for businesses, suggesting a tight supply for the device's launch. It was estimated that Apple secured 120,000 iPad preorders in the first day alone.
In a new note to investors, analyst Katy Huberty with Morgan Stanley said suppliers for the iPad have currently forecast 2.5 million iPads to be shipped in the first three months of availability, from March to May. In all, Apple will ship between 8 million and 10 million by the end of 2010, suppliers said -- a number much higher than the previous expectation of 5 million.
Huberty said the upward revisions to iPad build rates "point to strong initial pre-orders." Every one million iPads shipped equates to roughly 25 cents of earnings per share. A strong iPad debut, she said, sets up for "significant earnings upside."
The consensus on Wall Street, she said, is that Apple will sell between 3 million and 4 million iPads in the product's first year. But supplier shipping projections suggest the Cupertino, Calif., company will exceed market expectations.
"Near-term, we believe iPad will target the sizeable sub-$800 consumer notebook market, which equates to 30 million units in the U.S. and 120 million units globally," the report said. "Medium-term, newly introduced content (books, magazines, video) and iPad-optimized apps could broaden the addressable market and strengthen iPad sales momentum later this year."
Huberty said she believes the market is currently under-appreciating the long-term demand for the iPhone and iPad. She projects that Apple could have more than a 10 percent share of global handset sales, and 25 percent of the smartphone market, in the next 3 to 4 years.
Morgan Stanley has maintained its overweight rating for AAPL stock, with a price target of $250.
Also Monday, Apple began shipping iPads for those who placed the first preorders. Wi-Fi-only models have been shipped via UPS and are due to be delivered in the U.S. on April 3.
Apple has sold out of its initial run of iPad preorders. As of Saturday, those who attempted to prepurchase were informed that their device will ship by April 12.
Strong demand for iPad accessories has also caused delays. Those who didn't buy in on the first run of preorders for the keyboard dock and power adapter will now have to wait until May.
When it began accepting preorders earlier this month, Apple limited purchases to two per person. The company also turned down volume orders for businesses, suggesting a tight supply for the device's launch. It was estimated that Apple secured 120,000 iPad preorders in the first day alone.
Comments
P.S. How about a MBP refresh now that the iPad is shipping, please?
Just got an email from Apple that my 64GB Wi-fi iPad has shipped for delivery by April 3rd. UPS tracking info shows "In-Transit" from Shenzen, China.
Looks like they are shipping pre-orders from China, directly to buyers. That's why they have to ship a week before April 3.
No word on my second (16GB) yet.
Not even one customer had this product in their hands! Must be great to have so many stupid loyal customers. SCTR :P
Well that's one way to look at it. How about it's a good thing to have such high quality products that your customers can trust you.
Apple is doomed!
We're all doomed Dec. 12, 2012
Until then, way to go Apple
Not even one customer had this product in their hands! Must be great to have so many stupid loyal customers. SCTR :P
Loyal, yes, but shouldn't we quit calling them stupid before anybody has had a chance to see for themselves how good the iPad is? My feeling is that all these early adopters who have preordered an iPad unseen KNOW what the iPad is and isn't, and have decided that this is a device they would find useful and enjoyable. Nothing stupid about that, is there?
Not even one customer had this product in their hands! Must be great to have so many stupid loyal customers. SCTR :P
How does strong sales of a new device equate to "stupid loyal customers"? This is a device that has been eagerly anticipated by many, and many of those are outside of the typical fanbase for Apple. This is a product type that has had lots of interest for a LONG time now. Apple has proven to produce a fantastic product in the past, just look at the iPhone as the most recent example, so it's no great surprise that the iPad is enjoying strong initial sales. How many preorder copies of Vista did Microsoft sale, or Windows 7? I'm going to guess it was in the millions, and yet not one "stupid loyal customer" had the release version of those operating systems in their hands either.
Yes I am a loyal Apple customer. However, loyalty is something that must be earned, at least in my case. For me, Apple has done just that from iPod to Mac Pro to iPhone, and now to iPad. If I hadn't had excellent products from Apple along the way, there is no way I would shell out the money for this particular product. History however, my personal history, has shown Apple to produce high quality devices that are a pleasure to use. Of course I have my reservations such as lack of Flash support, no secondary storage like an SD card slot, and no real multi-tasking as of yet. Hopefully however Apple will address at least the multi-tasking issue soon.
Anyway, I'll be looking for my shipping notice throughout the day.
Apple is doomed!
No..... Apple is doomed!?
There, fixed that for you.......
Well that's one way to look at it. How about it's a good thing to have such high quality products that your customers can trust you.
My sentiments exactly.
Not even one customer had this product in their hands! Must be great to have so many stupid loyal customers. SCTR :P
When you put stupid, loyal and customer together, you know there's nothing much left to discuss with you in business sense.
Not even one customer had this product in their hands! Must be great to have so many stupid loyal customers. SCTR :P
that is what many said about iPhone !!...the stupid one's...LOL
Apple is doomed!?
Where's my GD shipment notification?!?!?!?!?