Analyst: iPad to sell 28m in 2011, impacting PC market
Both All Things D and AppleInsider report that, according to the analyst Maynard Um at UBS Investment research, the iPad is having a negative impact on the PC market. In a note to his clients, the analyst Um says, "Sales of traditional notebooks appear to be feeling pressure from the iPad, causing a scramble by vendors to launch iPad-like tablets. We believe that a majority of this impact is occurring on the lower end of PC sales as the iPad is priced close enough to this range that it becomes attractive to consumers looking to make purchases within this segment."Um goes on to say, "We are not sold that the iPad is purely cannibalizing PC sales, as the functionality of the iPad cannot yet deliver the functionality of notebook PCs. However, consumers who purchase iPads may be more willing to delay purchases and upgrades of existing PCs."
As a result of this, Um points to a "conservative" projection that Apple will sell 28 million iPads in 2011, and raises his target price for AAPL stock from $340 to $350. Um also pointed out that there is no evidence to say that the iPad is cannibalizing Mac sales.
However, in contrast, V3.co.uk reports that 28 million is "a bit high," according to analyst Tin Couling at analyst firm Canalyst. Canalyst predicts that Apple will have sold 12.5 million iPads by the end of this year, but shipments of the iPad will only reach 20 million in 2011 as new tablets flood the market, competing with Apple's iPad.
V3.co.uk notes that Samsung's Galaxy Tab is going to be one of the first major competitors to the iPad, but analyst firm Canalyst showed concern over its £650 price tag, sighting that it could make the entry level iPad, at £429, look reasonable (we're inclined to agree with that).
And still, only a few short days ago , analyst Katy Huberty from Morgan Stanley predicted that Apple is aiming to build as many as 3 million iPads a month by the end of the year. Meaning that Apple could make up to 36 million iPads next year, well above what both other analyst predict Apple will sell.
Apple announced in June that iPad sales had reached three million in its first 80 days. We'll have to wait and see where it goes from there, but analysts seem to agree that Apple's iPad will likely dominate the tablet market well into 2011.
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Both All Things D and AppleInsider report that, according to the analyst Maynard Um at UBS Investment research, the iPad is having a...
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All I can say is "um, um, ummmmm".
These analysts' figures are as believable as the projected $1000 price per share of Apple stock by end-of-decade I was reading about recently (zdnet, of all places, them being all pro-Apple, not).
If Apple sells 30million iPads this year, you can bet a LARGE percentage of those buyers will buy again when the latest model (with camera!) hits the shelves; plus of course those who chose to wait until the 2nd gen model; so I see no reason why Apple wont sell more than their estimate ... which will grow exponentially each year as current/new users upgrade. I think this is a fair enough statement seeing as most new iPod buyers are existing owners looking to upgrade and/or have the 'latest' Apple product.
September 13 2010 at 2:15 PM Report abuse Permalink rate up rate down ReplyYou can add my anecdotal data point: I quite definitely got an iPad instead of a notebook or netbook, as it suited the needs I had for it, _despite_ the fact that, yes, a $300 netbook can technically "outperform" the iPad, if you are talking about clock cycles.
@Seth, a netbook, however Hackintoshed, cannot give you 1) instant on and access to the apps you want to run 2) 10 hours of use 3) complete compatibility with a library of apps I already own, no additional licenses necessary 4) tables form-factor with multi-touch - try using a netbook standing up.
Projections involving iPads in 2011 must also take into account that the product will be rev'd as soon as the first of the year. This has a couple of important implications. First is feature set. It's probably a good bet that the next ver. of iPad will have a front facing camera and facetime integration. That's probably the most significant upgrade (other than iOS 4.2). Other features will likely include more memory and higher storage capacities. Perhaps less likely in the next rev. but more likely in rev 3 will be faster processor, retina display, motion sensors and features we haven't yet thought of. Second, as Apple builds the iPod into a product family like the iPod, you'll most certainly see a price decrease in the current models of from $50-$100 lowering the price of entry to $399 from it's current $499 entry point. I wouldn't be at all surprised to eventually see an entry level iPad priced as low as $299 retail within the next 12 to 18 months. At those price points, and the move by most hardware vendors to push into this market, one wonders what the netbook market will look like at that time. My guess is that it will be largely gone as the performance curve for tablets pushes upward.
September 13 2010 at 11:30 AM Report abuse Permalink rate up rate down ReplyAn iPad is FAR more capable than a netbook with windows 7 and only 1GB or RAM. Those things can't do ANYTHING without stalling and choking. The iPad is definitely the better choice between the two and people are seeing that.
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