Analyst: iPad Sales Have Strong Momentum

| Apple Stock Watch

Apple sold over a million iPads in the U.S. in 28 days, and the multimedia tablet looks to have strong momentum moving forward, especially with the iPad 3G finally on store shelves, according to UBS analyst Maynard Um.

“We surveyed about 75 consumers outside of Apple stores in New York on Friday in line for the 3G iPad,” Mr. Um said. “In general, demand appeared solid, but less than initial iPad launch, and in line with expectations, with the $629 16GB model being the most popular model (57 percent of purchasers), followed by the $729 32GB (29 percent) and then [the] $829 64GB [model].”

Based on customer responses, Mr. Um doesn’t have any concerns that strong iPad interest will eat into sales of other Apple products.

“While iPad sales are tracking better than expected, we continue to believe that the iPad will not cannibalize Mac sales and view the device as a largely incremental growth opportunity for Apple,” he said. “Our survey on Friday of Apple customers in line for the 3G iPad — and our survey on April 3 when the WiFi iPad went on sale — supports our view, as customers surveyed overwhelmingly indicated that the iPad would not replace their computers.”

Some 94 percent of the iPad customers UBS surveyed indicated they won’t be replacing their computers with their new multimedia tablets.

Looking forward, Mr. Um expects iPad sales will surpass his 2.1 million unit estimate for calendar 2010 thanks to strong consumer interest.

Mr. Um is maintaining his “Buy” rating and US$315 target price for Apple’s stock. Apple is currently trading at 265.89, up 4.80 (1.84%).

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Comments

Constable Odo

The iPad won’t eat into other Apple products sales.  That’s where Apple is smart by building products that don’t quite overlap into others.  This is the main beef that iHaters complain about because they’re always looking for one device to do everything.  That’s why they say that Apple is cheating consumers by coaxing them buy more than one Apple product.  I don’t believe in the one device that can do everything theory because the product would have to have too many compromises.  At least that’s how I see it.  As an Apple investor, I think Apple is doing what it needs to keep the revenue flowing and not hurting itself in the process.  Apple can’t force consumers to buy what they don’t want.  Keep the quality high and consumers will buy.

jbelkin

Also keep in mind the ipad has been in developer’s actual hands less than 3 weeks - I’m sure eventually we will see real productivity apps ...

Garion

2,1 million iPads to be sold in calendar 2010? That’s what I call a conservative estimate, Mr. Um!

The iPad has already sold 1 million in 28 days, we’re not halfway through 2010, and the iPad hasn’t even been launched outside of the US yet!

2,1 million iPads? No, double that, and you’re hitting closer to home, Mr. Um.

computerbandgeek

Headline: “Analyst: Apple to create new product made of Glass and Aluminum”

*paycheck please*

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