Apple’s iPad 2 launch seems strikingly similar to the original iPad launch to UBS analyst Maynard Um, and he expects the new multimedia tablet model will drive growth just as the first generation version did. He also expects Apple to release the iPhone 5 next quarter.
Just like the original iPad launch, Apple can’t keep up with consumer demand, but is slowly catching up. The iPad 2 launched in the U.S. in early March to long lines, and in many locations shoppers are still lining up before store hours in hopes of getting ahold of one.
“Although iPad units of 4.7 million were below [UBS estimates], demand continues to outstrip supply for iPad,” Mr. Um said. “We expect ramping supply to drive strong growth in the coming quarters, and while [Apple] didn’t tip its hand with regard to iPhone 5, we still anticipate a launch next quarter.”
Mr. Um had expected Apple to sell 6 million iPads during the quarter, and the Wall Street consensus had targeted 6.3 million.
Apple reported record breaking second fiscal quarter figures on Wednesday that included US$24.67 billion in revenue and $5.99 billion in profit. The company sold 4.69 million iPads, 3.76 million Macs, and 18.65 million iPhones.
Mr. Um is raising his fiscal 2011 revenue estimate for Apple from $101.7 billion up to $103.8 billion, and his EPS estimate is up from $23.25 to $24.81.
Mr. Um’s is maintaining his “Buy” rating for Apple’s stock, but raised his target price from $465 up to $495. Apple is currently trading at $357.16, up 14.75 (4.31%).