Apple's iPad 2 unveiling viewed as 'crucial' to stay ahead of competition
With over a hundred tablets expected to come to market this year looking to take on the iPad, Apple's unveiling of its second-generation tablet on Wednesday will be a critical moment for the company, one analyst believes.
Brian White with Ticonderoga Securities said in a note to investors on Tuesday that he believe's Apple's iPad 2 event, to be held on Wednesday, is a "crucial product launch." In particular, he said, analysts will look to see how well Apple handles the debut of its second-generation iPad with Chief Executive Steve Jobs on a medical leave of absence.
"We estimate there are well over one hundred tablets coming to market around the world this year," White said. "Assuming a new iPad is unveiled at this event, we believe Apple must make a convincing case for why the iPad 2 is better than the plethora of competitors coming to market, while at the same time persuading iPad 1 buyers to upgrade to iPad 2."
With 15 million iPads sold in calendar year 2010, the new device has become a very important product for Apple. White noted that the iPad and related products and services generated $4.61 billion in sales in the first quarter of Apple's fiscal 2011, amounting to 17.2 percent of the company's revenue.
The analyst has given a "conservative" estimate of 27.36 million iPad sales in fiscal 2011, generating $16.92 billion.
"In fact, we estimate that iPad sales will contribute nearly one-third of Apple's $36.8 billion in incremental revenue that we are modeling in (fiscal year 2011)," he wrote. "If we exclude iPad revenue from Apple's (fiscal year 2010) results and our FY11 model, our revenue growth rate projection for Apple would be 41% in FY11 versus our current projection of 56%."
Brian White with Ticonderoga Securities said in a note to investors on Tuesday that he believe's Apple's iPad 2 event, to be held on Wednesday, is a "crucial product launch." In particular, he said, analysts will look to see how well Apple handles the debut of its second-generation iPad with Chief Executive Steve Jobs on a medical leave of absence.
"We estimate there are well over one hundred tablets coming to market around the world this year," White said. "Assuming a new iPad is unveiled at this event, we believe Apple must make a convincing case for why the iPad 2 is better than the plethora of competitors coming to market, while at the same time persuading iPad 1 buyers to upgrade to iPad 2."
With 15 million iPads sold in calendar year 2010, the new device has become a very important product for Apple. White noted that the iPad and related products and services generated $4.61 billion in sales in the first quarter of Apple's fiscal 2011, amounting to 17.2 percent of the company's revenue.
The analyst has given a "conservative" estimate of 27.36 million iPad sales in fiscal 2011, generating $16.92 billion.
"In fact, we estimate that iPad sales will contribute nearly one-third of Apple's $36.8 billion in incremental revenue that we are modeling in (fiscal year 2011)," he wrote. "If we exclude iPad revenue from Apple's (fiscal year 2010) results and our FY11 model, our revenue growth rate projection for Apple would be 41% in FY11 versus our current projection of 56%."
Comments
But we know very little of iOS5 for iPad, which in my opinion, is where the biggest update is needed. Something to really differentiate it from that "big iPod touch" stigma that still plagues many people's minds.
Yes, the iPad's growth will slow, but this is 'omg, the sky is falling' hyperventilation.
99 others for non-Apple types to fight over? 'Nuff said.
Yes, the iPad's growth will slow, but this is 'omg, the sky is falling' hyperventilation.
To be fair, he's right in what he says. It's just that it's stating the obvious but it's his job to analyse, even when the analysis is easy. He didn't ask to be quoted in our bear pit lol
Wait. I know, you must be an 'analyst'.
Brilliant analysis by the way, he should work for Apple.
J.
Regarding tomorrow's announcement, I have a funny feeling they may pull a Mac Mini on us, and up the floor price by $100. Expecially now that they realize their competition can't match their price/performance ratio. But really, what's $100? I spent more than that on dinner with the family last Saturday without batting an eye. Spending that much more on a device I'd use daily for over a year? No big deal.
Have the hundreds of new "smartphones" released since 2007 kill the iPhone? Or have they simply served to confuse the public at large when it comes to identifying a viable competitor?
they will do a live facetime chat with steve!
Steve currently isn't a breathing life form, nor is he employed as an analyist, nor do any of his readers believe his analysis is worth reading. But we thought we'd share this report anyways.
in other 'news'....it's important that I breathe....
Thank's for reminding me! Uhhh!!:
Surely the burden of proof is on the iPad competitors to demonstrate that THEY are better, not the other way around.
Given peoples' fickle attitudes, I can easily imagine the word "disappointing" being readied for the iPad 2's debut: "The screen resolution is the same, and that's disappointing unlike the XOOM." Or, "It only has double the RAM of the first iPad, while other tablet offerings are 1GB. That's disappointing."
Unless Apple takes the restrictions off developers, there's going to be a lot of love for Android tablets, just like there is for Android phones. Apple will probably own more than half the market for quite a while, but the market is no longer cornered. Which is a good thing for all customers.
Regarding tomorrow's announcement, I have a funny feeling they may pull a Mac Mini on us, and up the floor price by $100. Expecially now that they realize their competition can't match their price/performance ratio. But really, what's $100? I spent more than that on dinner with the family last Saturday without batting an eye. Spending that much more on a device I'd use daily for over a year? No big deal.
I am actually rooting for some android tablet success. Not because I want to switch to android or anything, and I don't have ill-will toward Apple shareholders... I just don't want Apple to be the only game in town. I miss the days when Apple had a niche following. Back then seeing a PowerBook in a coffee shop was rare. Not everyone was jumping on the bandwagon. Now, everyone I know has an iPhone or MacBook Pro. I like the success in some ways because it vindicates us long-time users as knowing what we are talking about. But I don't want Apple to get lazy or spread themselves too thin. I need them to continue innovating as if they still have something to prove.
Anyway most of the tablets getting ready to drop are owned by investors with nary a technical skill. They just have money. They hook up with folks that do all the sh** like design and marketing and engineering. They get their crap tossed onto the market and wait for the fish to bite.
And look at the Xoom for instance. There are two mutually exclusive cultures in that tabilet. One is Moto's ready to ride the gravy train a** and then there is Google. They didn't set off to make a great tablet experience for the public. So if you want to talk about fragmentation then look no further than all these effing Android tablets ready/ already for the market.