Apple's iPad believed to be outselling Macs in the US
A new forecast predicts Apple is now selling more than 200,000 iPads per week in the U.S., a total greater than the estimated 110,000 Macs sold stateside every seven days.
Analyst Mike Abramsky with RBC Capital Markets issued a note to investors Thursday in which he suggested iPad sales are now just below that of the iPhone 3GS in the U.S. in the first quarter of 2010, when the pace was at 246,000 per week. Abramsky cited checks with sources indicating that sales remain strong, thanks to sustained word-of-mouth for the product.
"Retail store checks in mid-May show widespread iPad stockouts at Apple retail stores and Best Buy," Abramsky wrote. "(More than 25 percent) of Apple stores have only selected Wi-Fi iPads (3G sold out) and are allocating to waiting lists)."
That's the same story AppleInsider discovered earlier this month, when a survey of 10 Apple retail stores from across the country found that all were sold out of the iPad 3G, and availability of the Wi-Fi-only model was limited. Customers who want the iPad 3G can sign up for Apple's "Notify Me" service, which will e-mail customers when the product comes back in stock.
Abramsky said he believes Apple has pre-sold about 600,000 units in the countries where the iPad is set to launch this summer. The iPad will become available in nine more countries on May 28: Australia, Canada, France, Germany, Italy, Japan, Span, Switzerland and the U.K.
In all, Abramsky believes Apple will sell 8 million iPads in calendar year 2010. That's up from his previous prediction of 5 million iPads in calendar 2010. The analyst believes the product will result in 25 percent cannibalization, but increase revenue to $59.7 billion, and $13.40 earnings per share (up from $58.3 billion and $13.06) in Apple's 2010 fiscal year. He also reiterated his price target of $350 for AAPL stock.
Abramsky also issued a second note Tuesday, revealing the results of an RBC survey of 1,000 respondents about potential future iPhone purchases. The questionnaire found that 20 percent were likely to purchase Apple's next-generation iPhone, expected to be released in June.
The survey also found that 50 percent of first-generation iPhone and iPhone 3G users plan to purchase Apple's handset upgrade. Abramsky said that equates to between 9 million and 10 million prospective buyers.
Most users (16 percent) are interested in a faster device, with speed being their top buying reason. Another 11 percent want iPhone OS 4, while 10 percent want an improved camera. Only 4 percent were interested in multitasking, and another 4 percent in video chat, suggesting they are not major phone-selling features.
Of those surveyed, 54 percent said they are willing to pay $299 for a higher-capacity next-generation iPhone, versus 46 percent who would only pay $199 for the lower capacity. Abramsky said a higher mix of $299 iPhone sales will benefit Apple's margins. The analyst believes Apple will sell 40 million iPhones in the 2010 calendar year.
Analyst Mike Abramsky with RBC Capital Markets issued a note to investors Thursday in which he suggested iPad sales are now just below that of the iPhone 3GS in the U.S. in the first quarter of 2010, when the pace was at 246,000 per week. Abramsky cited checks with sources indicating that sales remain strong, thanks to sustained word-of-mouth for the product.
"Retail store checks in mid-May show widespread iPad stockouts at Apple retail stores and Best Buy," Abramsky wrote. "(More than 25 percent) of Apple stores have only selected Wi-Fi iPads (3G sold out) and are allocating to waiting lists)."
That's the same story AppleInsider discovered earlier this month, when a survey of 10 Apple retail stores from across the country found that all were sold out of the iPad 3G, and availability of the Wi-Fi-only model was limited. Customers who want the iPad 3G can sign up for Apple's "Notify Me" service, which will e-mail customers when the product comes back in stock.
Abramsky said he believes Apple has pre-sold about 600,000 units in the countries where the iPad is set to launch this summer. The iPad will become available in nine more countries on May 28: Australia, Canada, France, Germany, Italy, Japan, Span, Switzerland and the U.K.
In all, Abramsky believes Apple will sell 8 million iPads in calendar year 2010. That's up from his previous prediction of 5 million iPads in calendar 2010. The analyst believes the product will result in 25 percent cannibalization, but increase revenue to $59.7 billion, and $13.40 earnings per share (up from $58.3 billion and $13.06) in Apple's 2010 fiscal year. He also reiterated his price target of $350 for AAPL stock.
Abramsky also issued a second note Tuesday, revealing the results of an RBC survey of 1,000 respondents about potential future iPhone purchases. The questionnaire found that 20 percent were likely to purchase Apple's next-generation iPhone, expected to be released in June.
The survey also found that 50 percent of first-generation iPhone and iPhone 3G users plan to purchase Apple's handset upgrade. Abramsky said that equates to between 9 million and 10 million prospective buyers.
Most users (16 percent) are interested in a faster device, with speed being their top buying reason. Another 11 percent want iPhone OS 4, while 10 percent want an improved camera. Only 4 percent were interested in multitasking, and another 4 percent in video chat, suggesting they are not major phone-selling features.
Of those surveyed, 54 percent said they are willing to pay $299 for a higher-capacity next-generation iPhone, versus 46 percent who would only pay $199 for the lower capacity. Abramsky said a higher mix of $299 iPhone sales will benefit Apple's margins. The analyst believes Apple will sell 40 million iPhones in the 2010 calendar year.
Comments
What it has made me reconsider is whether I really need to upgrade my iPhone 3G to a 4G. Because if I have the iPad for 3rd party apps, then the phone is mostly just email, and even a crappy old 3G (non-S) is fine for that.
What was the last BS article? That Apple has sold 500,000 iPads when they acknowledged it was 300,000?
Perhaps that's the purpose, to get Apple to report by stating something ultra-outrageous.
"Retail store checks in mid-May show widespread iPad stockouts at Apple retail stores and Best Buy," Abramsky wrote. "(More than 25 percent) of Apple stores have only selected Wi-Fi iPads (3G sold out) and are allocating to waiting lists)."
Reducing supply below demand is a marketing trick.
It can be detrimental as people get over their impulsiveness to buy a iPad and reconsider, realizing the iPads limitations and it's dependence upon a computer for it's updates/operation.
Hmm, could Apple be restricting iPad supply to get people to buy a Mac instead?
Apple is always upselling, always.
I'm happy for Apple that they are having success with this product. But I sure don't understand it. A real MacBook is such a better choice.
A better choice for what?
Running iPad apps?
Taking on a trip for a few emails, short letter to the boss and watching a movie on the aiplane?
Based on your comment, a Mac Pro would be a better choice than either an iPad or a MacBook.
What it has made me reconsider is whether I really need to upgrade my iPhone 3G to a 4G. Because if I have the iPad for 3rd party apps, then the phone is mostly just email, and even a crappy old 3G (non-S) is fine for that.
If you have a 3GS I might agree, but iPhone OS 4.0 is really quite nifty, and you're not going to be able to use its full capabilities with a 3G.
I'm happy for Apple that they are having success with this product. But I sure don't understand it. A real MacBook is such a better choice.
A 1.5 pound device that you don't even have to remove from your carry-on in an airport and can run zillions of apps and do all your casual computing needs... at half the cost? Yeah, who would ever want that?
Looks like Apple needs to report their numbers again, the bullsh*t artists and stock manipulators are at work again.
What was the last BS article? That Apple has sold 500,000 iPads when they acknowledged it was 300,000?
Perhaps that's the purpose, to get Apple to report by stating something ultra-outrageous.
I don't think it's outrageous at all -- it might even prove conservative. We know they sold 1 million in a month, we know that iPad supplies continue to be constrained in the US, we know that they are rolling it out internationally. After the international rollout, we then move into back-to-school and holidays. It really doesn't take much imagination at all to see how they will continue selling at a rate of about 1 million per month.
Looks like Apple needs to report their numbers again, the bullsh*t artists and stock manipulators are at work again.
What was the last BS article? That Apple has sold 500,000 iPads when they acknowledged it was 300,000?
Perhaps that's the purpose, to get Apple to report by stating something ultra-outrageous.
Reducing supply below demand is a marketing trick.
It can be detrimental as people get over their impulsiveness to buy a iPad and reconsider, realizing the iPads limitations and it's dependence upon a computer for it's updates/operation.
Hmm, could Apple be restricting iPad supply to get people to buy a Mac instead?
Apple is always upselling, always.
Wow. You must work for Apple, to have such inside insight! And, Apple's demand forecasting system must be accurate enough to the last decimal point, even though the iPad is a completely new product category!
I don't think it's outrageous at all -- it might even prove conservative. We know they sold 1 million in a month, we know that iPad supplies continue to be constrained in the US, we know that they are rolling it out internationally. After the international rollout, we then move into back-to-school and holidays. It really doesn't take much imagination at all to see how they will continue selling at a rate of about 1 million per month.
You might be right, but I rather hear the numbers from Apple.
Lost my iPhone. Now I am iPad + RAZR. Still not quite sure what to think of myself... expect to upgrade next month, but... not entirely sure.
Of those surveyed, 54 percent said they are willing to pay $299 for a higher-capacity next-generation iPhone, versus 46 percent who would only pay $199 for the lower capacity.
I actually thought the opposite. Now that I own an iPad, I don't need the space on iPhone for movies, thus why pay for a larger-capacity iPhone?
A better choice for what?
Running iPad apps?
Taking on a trip for a few emails, short letter to the boss and watching a movie on the aiplane?
Based on your comment, a Mac Pro would be a better choice than either an iPad or a MacBook.
Agreed. The MacBook pro is a perfect machine because it runs everything, even Windoze apps.
What the iPad did to my family
The Jobs email to that guy at Gawker was very telling when Jobs said that the PC is changing and some may not accept it. People may not want to hear it but this, and other future touchscreen Apple products, are the future of the Mac.
I'm happy for Apple that they are having success with this product. But I sure don't understand it. A real MacBook is such a better choice.
Heck, a good Netbook is a better choice. I don't get it either.
Apple is always upselling, always.
And they seem to be very good at it.
Likely, that is one reason for their limited lineup of products. They make the upgrade path is an easy choice for buyers.
... then the phone is mostly just email, and even a crappy old 3G (non-S) is fine for that.
Wow, it doesn't take long to descend to the dregs eh?
As I read many, many years ago now, talking of computers: "If it works, it's obsolete".
Heck, a good Netbook is a better choice. I don't get it either.
No way. I just spent ten days traveling with an iPad and it was so much more pleasurable than any notebook I've hauled around for the same purpose. If these numbers hold up, the never used one but still don't like it crowd are going to be very confused.
I'm happy for Apple that they are having success with this product. But I sure don't understand it. A real MacBook is such a better choice.
The fact of the matter is that the typical Apple customer is buying multiple Apple products, not just one and also likely has a PC in the household as well.
On average, Apple's customers are considerably more affluent than those of their competitors. The underaged fanboys here still living with Mommy aren't the average Apple consumer.