As iPad Optimism Builds, Expectations Grow

The wait is almost over. The iPad launch is this week -- Saturday, April 3, to be exact. Soon, lines will form outside of your local Apple (Nasdaq: AAPL  ) store, though online reports suggest only those who pre-ordered an iPad prior to Saturday, March 27 will be leaving with the precious cargo in hand. Best Buy (NYSE: BBY  ) stores, given access to a handful of the devices, will be buzzing on Saturday as well.

So here's the million-dollar -- or more accurately, billion-dollar, question -- how many iPads will Apple sell? The launch speculation feels like a slightly more informed, high tech version of guess the number of jelly beans in the jar. That said, there are a number of educated, although wildly varying, estimates out there.

Consensus estimates of Wall Street analysts are 3 million to 4 million iPad sales this year, with more optimistic analysts, such as Morgan Stanley's Katy Huberty predicting 6 million. Meanwhile, iPad suppliers expect to ship 8 million to 10 million iPads this year.

When the iPad was first announced in January, the level of skepticism about the product was high. Not a laptop, not a smartphone -- who will want this device, and what's the deal with that name? Since then, the skepticism seems to have thawed with the arrival of spring, or further reflection on Apple's history of creating consumer demand where none previously existed. Consensus sales estimates are now at the high end of ranges published in January.

Only time will tell whether the iPad is the next iPhone or the next Apple TV. But it's definitely not the next Palm (Nasdaq: PALM  ) Pre or Pixi -- Apple's future does not hinge on the success of this device. Competing products powered by Google's (Nasdaq: GOOG  ) Android and Microsoft's (Nasdaq: MSFT  ) Windows 7 operating systems will emerge, but Apple will define the category.

The launch buzz and early sales volume will be driven by the most devoted Apple fans, but in time, I expect the iPad to find its target consumer. My bet is on a younger consumer eager to replace a textbook-laden backpack with an iPad that also doubles as a gaming and entertainment device.

More Foolish views on Apple and the iPad:

Fool contributor April Taylor owns shares of Apple and Google. Best Buy and Microsoft are Motley Fool Inside Value choices. Google is a Motley Fool Rule Breakers recommendation. Apple and Best Buy are Motley Fool Stock Advisor picks. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Best Buy. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 02, 2010, at 11:37 AM, VirtualToro wrote:

    All due respect; I think you have it wrong - all the reviews have been extremely positive. A little more analysis and research might have led you to the conclusion that this is fundamentally a new industry. The I Pad will only be limitied by its' production capacity. Many folks who don't even need one will get one because if you don't have one; you will just not be cool. And their are many many other reasons to get one. Personally I think I'll wait until it has UBS ports but maybe not. Apple stock will hit 400 in a year. Cheers Mate!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1140850, ~/Articles/ArticleHandler.aspx, 9/22/2014 8:33:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement