This article contains two parts:
Part 1: iPad Sales Fall Shy of Upbeat Expectations
Part 2: iPad Sales Expected to Double by 2011 and Triple by 2012
iPad Sales Fall Shy of Upbeat Expectations
April 6, 2010
By Joseph Menn in San Francisco, from ft.com
Apple sold about 300,000 iPads on the tablet computing device's first day on the market, falling short of the most bullish projections and charting a course for a more modest initial adoption trend.
The company said the figure was based on the number of iPads delivered in the US to retailers, customers' homes and businesses and/or sold directly at its own stores by midnight on Saturday.
The figure was in line with consensus estimates before the weekend, though some analysts, notably Gene Munster of Piper Jaffray, had predicted double those sales.
Apple limited the release of the iPad to the US market and advance orders to two per customer. The first version of the gadget - seen by many as Apple's most important new product since the introduction of the iPhone in 2007 - only offers WiFi connectivity, rather than a connection to the internet over a mobile network. Nevertheless, the debut day's unit sales were slightly ahead of those at the 2007 US launch of the highly successful iPhone.
Sales of the iPhone and iPod touch, which has similar software and functionality to the iPad, have soared since then, with 75m units in circulation as of January. "We missed the launch day sales, but we remain confident in the iPad as an investable theme," Mr Munster said yesterday.
Many analysts said the iPad would take longer than the iPhone to find its market because the online marketplace for games, media content and reconfigured programs is just getting off the ground. It is also trying to create a new market segment as it is not intended to replace PCs.
Interviews and online postings showed that early customers were happy with the gadget, which has a starting price of $499. Apple has told suppliers it wants to sell 1m units a month, according to analyst checks with the supply chain. This figure is twice as high as many analysts on Wall Street are predicting for the first year.
iPad Sales Expected to Double by 2011 and Triple by 2012
The sale of Apple iPad is expected to reach 7.1 million units in 2010 and it also expected that it will double in 2011 to 14.4 million and will nearly triple in 2012 to reach 20.1 million. The attractive design of the device apart from its compelling applications and multi-touch capability, which has always been some of the key components of Apple products, will play a major role in the exorbitant sale of iPad.
Early adopters and the one attracted to the iPad’s unique touch-screen-based user interface will drive the sale of the iPad in 2010. Flood of new applications, improved functionality and declining prices will play a major role in the increase in the sale of iPad in 2011 and 2012. Swift feature enhancements and the early addition of Flash support will also boost up the sale.
iPad ideally supports touch which is the new standard for user interfaces, providing a naturally intuitive way of operating an electronic device, whether you are two or 92. Although Apple has limited IPad as creation device by both minimizing and maximizing the capabilities of the devices, it has compensated by offering a wealth of easily consumable applications. As IPad is incapable of supporting Adobe Flash, its long term viability has come into question.
According to Francis Sideco, principal analyst, wireless communications, until Apple addresses this issue one way or another, its decision not to support Flash communicated earlier on by Apple CEO Steve Jobs will have a limiting effect on the iPad’s sales potential.