'Significant' iPad update expected to drive sales of 55 million in 2012

Posted:
in iPad edited January 2014


Apple's anticipated third-generation iPad is expected to be a "significant" hardware update with a Retina Display, Siri voice recognition and 4G LTE connectivity -- all features that will help drive sales of 55 million units in 2012, according to a new report.



Analyst Shaw Wu with Sterne Agee said in a note to investors on Wednesday that his checks with industry sources have portrayed Apple's third-generation iPad, set to be unveiled next week, as a "significant" hardware refresh. In particular, he believes the inclusion of 4G long-term evolution data connectivity will be the key feature.



Sources who spoke with Wu reportedly indicated that Apple has made "notable progress" in improving battery life with 4G LTE devices. Power consumption issues with the high-speed wireless standard have been an issue for some of the first LTE smartphones to hit the market.



"This is due to AAPL's ownership of core intellectual property including systems design, semiconductors, battery chemistry, and software," Wu wrote.



With 4G LTE leading the way among a host of new features, Wu believes Apple's third-generation iPad will further differentiate the product from other options on the market, including the $199 Amazon Kindle Fire, and a host of tablets running Google's Android operating system.



"We view the potential inclusion of 4G LTE as key with speeds approaching that of a quality personal computer experience," he said. "We also view as a positive indicator that the upcoming iPhone refresh in the fall timeframe will likely include this key feature as well."



Apple sent out invitations on Tuesday for a media event set for next Wednesday, March 7 at 10 a.m. Pacific in San Francisco, Calif. "We have something you really have to see. And touch," Apple's invitation reads, featuring a picture of an iPad being touched by a fingertip.











The announcement of the event prompted Wu on Wednesday to increase his projected iPad sales for calendar 2012, from 51 million to 55 million. He sees Apple selling 10 million units in the March quarter as Apple begins to ramp up production, which will eventually reach volume in the June quarter.



Those iPad sales are expected to drive $158 billion in revenue and $43.30 in earnings per share for Apple's fiscal year 2012, while revenue is projected to grow to $179 billion in fiscal 2013.



Sterne Agee has also raised its price target for AAPL stock after the company reached record heights this week, pushing its market capitalization to a half-trillion dollars. Wu's latest price target calls for AAPL to reach $620, up from his previous prediction of $550.



[ View article on AppleInsider ]

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Comments

  • Reply 1 of 79
    Quote:
    Originally Posted by AppleInsider View Post


    Apple's anticipated third-generation iPad is expected to be a "significant" hardware update with a Retina Display, Siri voice recognition and 4G LTE connectivity -- all features that will help drive sales of 55 million units in 2012, according to a new report....



    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update."



    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.
  • Reply 2 of 79
    irnchrizirnchriz Posts: 1,601member
  • Reply 3 of 79
    Quote:
    Originally Posted by Prof. Peabody View Post




    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    Yes, but Apple's closest business ally (Microsoft, I mean), will soon announce MicroSoft Office Suite for iPad ... (well, they have no other choice, don't they ?)
  • Reply 4 of 79
    Quote:
    Originally Posted by irnchriz View Post






    It just gets funnier every time!
  • Reply 5 of 79
    Quote:
    Originally Posted by Prof. Peabody View Post


    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update."



    I agree. Certainly won't be 'significant' enough to satisfy the whiners.



    "why doesn't it slice and dice???" , "Apple are doomed" etc



    Brace yourselves, I can smell the unwarranted disappointment already.
  • Reply 6 of 79
    Quote:
    Originally Posted by umrk_lab View Post


    Yes, but Apple's closest business ally (Microsoft, I mean), will soon announce MicroSoft Office Suite for iPad ... (well, they have no other choice, don't they ?)



    Microsoft will never be a long-term success because they aren't a variety of fruit. Check out this new baby: Raspberry Pi, starts at $25, runs Linux.



    The computing world will soon be divided into cheap running free software (these things) and great designs (Apple). Where does Microsoft fit in?
  • Reply 7 of 79
    Quote:
    Originally Posted by Prof. Peabody View Post


    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update."



    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    Your downplaying of what could potentially be a doubling of processor speed aside, when a device is almost entirely a screen, a double resolution display IS a big deal.



    Are the only metrics you'd consider significant case design? Would you have preferred thinner and lighter with no internal improvements?
  • Reply 8 of 79
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Prof. Peabody View Post


    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update."



    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    Yep. It's going to bomb just like the iPhone 4S which wasn't a significant update, either.



    If the most plausible rumors are true, the iPad 3 will have twice the resolution (4 times the pixel density). It will be at least twice as fast. It will have a much better camera. From a user's perspective, that's a pretty significant update.



    Would you be happier if they had a new case and didn't change anything else?
  • Reply 9 of 79
    jnjnjnjnjnjn Posts: 588member
    Wu creates an artificial disappointment by expecting the iPad to include 4G.

    It won't. See and touch.



    J.
  • Reply 10 of 79
    Quote:
    Originally Posted by Prof. Peabody View Post


    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update."



    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    Would you mind linking the specifications? I haven't seen the specifications as yet so I could make such a judgement. In fact, I had no idea that the specifications had been published.



    If we assume that various rumors are true, such as:



    Retina Display (264 ppi)

    4G LTE

    2x graphics performance (minimum)

    2x processing performance (minimum)



    When was the last time desktops or laptops received such a significant upgrade?
  • Reply 11 of 79
    jnjnjnjnjnjn Posts: 588member
    Quote:
    Originally Posted by Prof. Peabody View Post


    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update" ...

    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    4 or more times faster in GPU performance is nothing to be ashamed about.

    A huge retina display is certainly a huge improvement. It will make the device suitable for professional deployment and serious applications intended to create new things.

    You could say that the iPad has grown up now.



    J.
  • Reply 12 of 79
    Lots of heavy action going on right now with Apple's stock:



  • Reply 13 of 79
    Quote:
    Originally Posted by philipm View Post


    Microsoft will never be a long-term success because they aren't a variety of fruit. Check out this new baby: Raspberry Pi, starts at $25, runs Linux.



    The computing world will soon be divided into cheap running free software (these things) and great designs (Apple). Where does Microsoft fit in?



    Never underestimate the importance of a case...
  • Reply 14 of 79
    Quote:
    Originally Posted by Prof. Peabody View Post


    While I think they are right about the sales and will certainly buy one myself at the earliest opportunity, I think it's a bit of a stretch to call this a "significant update."



    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    Yeah! How lame of apple to roll out such a micro upgrade. They should at least add some coffee machine functionality. I am sooooo disappointed.
  • Reply 15 of 79
    Quote:
    Originally Posted by 11thIndian View Post


    Your downplaying of what could potentially be a doubling of processor speed aside, when a device is almost entirely a screen, a double resolution display IS a big deal.



    Are the only metrics you'd consider significant case design? Would you have preferred thinner and lighter with no internal improvements?



    Some people don't care about specs. Style victims only care when something looks different, so their friends will notice it and envy them when they pull it out.



    Why is everyone neglecting Siri? I don't have an iPad yet, but I expect to buy an iPad3 because I expect it to have Siri. I think Siri is a game changer and it is still only in beta. I'm already writing longer texts and emails because of Siri, and using my iPhone as a sort of Siri microphone to dictate to my MacBook. When Siri matures it will change the way we approach computing.
  • Reply 16 of 79
    irnchrizirnchriz Posts: 1,601member
    Quote:
    Originally Posted by parksgm View Post


    It just gets funnier every time!



    going to have 7 days of these btw



  • Reply 17 of 79
    Quote:
    Originally Posted by mdriftmeyer View Post


    Lots of heavy action going on right now with Apple's stock:



    Apples stock ignited the turbo booster!



    I just hope you guys across the atlantic do some nice shopping, to kick the USD out of it's plummeting course. Every excitement about APPL gets a bit flattened by the diving USD exchange.
  • Reply 18 of 79
    Quote:
    Originally Posted by 11thIndian View Post


    Your downplaying of what could potentially be a doubling of processor speed aside, when a device is almost entirely a screen, a double resolution display IS a big deal.



    Are the only metrics you'd consider significant case design? Would you have preferred thinner and lighter with no internal improvements?



    I may have overstated my case (based on all the criticism), but my complaint was more of a "writer's complaint," anyway. I am not disappointed, I'm just saying it's an overstatement to refer to it as "significant."



    The word "significant" is ... well a significant, weighty word. To me, a "significant update" is something different and new, something with import or a new design that "changes the game" sort of speak.



    This is a great update, but it's not that (at least IMO).



    This is the "off year" update (second year of the same model design). It's more akin to a new coat of paint or the insertion of a slightly higher performance motor in a car than it is a whole new design.
  • Reply 19 of 79
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Prof. Peabody View Post


    I may have overstated my case (based on all the criticism), but my complaint was more of a "writer's complaint," anyway. I am not disappointed, I'm just saying it's an overstatement to refer to it as "significant."



    The word "significant" is ... well a significant, weighty word. To me, a "significant update" is something different and new, something with import or a new design that "changes the game" sort of speak.



    This is a great update, but it's not that (at least IMO).



    This is the "off year" update (second year of the same model design). It's more akin to a new coat of paint or the insertion of a slightly higher performance motor in a car than it is a whole new design.



    The first definition for 'significant' on dictionary.com is "important; of consequence.".



    You don't think that 4 times the pixel density and at least twice the performance is of consequence?



    You have 'significant' confused with 'revolutionary'.
  • Reply 20 of 79
    paxmanpaxman Posts: 4,666member
    Quote:
    Originally Posted by Prof. Peabody View Post


    I think it's a bit of a stretch to call this a "significant update."



    It will look almost identical to the second generation version. It will be slightly faster and have a sharper screen.



    But remember that a tablet is essentially only a screen with a processor. If what you call a slightly faster performance turns out to be a significantly faster performance, which in turn enables new apps, or better use of existing processor intensive apps, and it has a much better camera, and it has an industry leading high res screen, and the batter life remains the same.... wouldn't you call that a 'significant hardware update' ?

    I would.
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