Analyst: iPad 2 Changes “Phenomenal”

| Apple Stock Watch

The changes Apple was able to bring to its iPad line are “nothing short of phenomenal,” according to analyst Brian Marshall of Gleacher & Co. Mr. Marshall maintained his US$400 price target and “Buy” rating for Apple’s stock in place, and he didn’t change his iPad estimates for 2011, but he did say that he might change his mind on upgrading his own iPad.

“Heading into the event,” he wrote in a research note to clients obtained by The Mac Observer, “we had no intention of upgrading our [1st generation] iPads, but after testing the new device, we may have changed our minds. The technological improvements the AAPL design team made to the iPad 2 in just approximately 12 months is nothing short of phenomenal, in our view (e.g., 33% thinner, 15% lighter, 9x faster graphics, smart cover capability, etc.).”

He also noted that Apple Steve Jobs looked better than he did at his last appearance, and felt that Mr. Jobs’s appearance had one main purpose, and that was to tell the world that he wasn’t going anywhere just yet.

Mr. Marshall wrote, “We believe his message was loud and clear: ‘This is my company and I am not planning
on going anywhere anytime soon.’”

Calling his own iPad estimates “conservative,” Mr. Marshall currently predicts that Apple will sell 5.3 million iPads during the March quarter (Apple’s 2nd fiscal quarter), and 30 million during calendar 2011.

Shares in AAPL moved higher Thursday, closing at $359.56, up $7.44 (+2.11%), with moderate volume of 17.8 million shares trading hands.

AAPL Chart

Source: Yahoo! Finance

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

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Hey look, another analyst trying to influence Apple stock prices!


yah, you got it or report it right, Brian. For the spec enthusiasts, what iPad 2 lacks in fancy bells and whistles, it sure comes up spades with size, speed, graphics?the sort of bits that bite.

And daemon, slow down. Thems thoughts to think not speak. (prob right tho.)


I love the three completely different articles on this, bravo for nurturing such broad views within Mac Observer. smile

There’s no denying the software demos were amazing, I think we’ll be at the tipping point for what they’re calling post pc before we know it - that’s the kind of stuff that I want to do with my devices. What Steve said about technology and heart is so true, and this is the direction toward which we are inexorably heading, no question. The technology an the ways in which we use it will only become more organic, transparent, and free flowing as time goes by.


The stock market must have it’s collective nose full of “charlie sheen” because the baseline for Apple right now is supposed to be about $300, because 1) the stock is over-valued and 2) SJ is on medical leave and will never be back at Apple. I’m sure that’s what I heard back on January 17th.

Bryan Chaffin

I love the three completely different articles on this, bravo for nurturing such broad views within Mac Observer.

Thanks for noticing, Jamie!  We’ve worked very hard over the years to bring as many viewpoints as possible to our readers, whether or not I (or Jeff) agree.  I appreciate you noticing.


Hardly phenomenal. What a bs pump.


Oh, wait! Didn’t see this:

“*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.”


A refresh with cameras.
A huge change in capability, no
If apple would have done nothing other than introduce colors some would praise the product.
Nice design, a bit lighter but a major advance, NO


Worth it enough for me to jump in. I was waiting for cameras. The extra speed, smaller, and lighter are good too. Perfect for the kids to do lots of amazing stuff with. With the cameras it is a big big deal…..for us anyhow.

Charlie Sheen

Apple overvalued?  Let’s take a look at the facts.
Apple earned almost $18 per share last year and continues to roll out amazing products that rocket sales.

Apple has a Price to Earnings of only 20.  That’s low historically for even stodgy tech firms.  Comparatively Amazon and Netflix have a 70 P/E ratio.  Lot of companies including your banks have negative earnings and little growth prospects.

They have little true competition, they have a loyal customer base, and Steve Jobs looks healthy and sounds sharp.


@ Charlie - and no dividend - last I looked.


It was a good upgrade in CPU, GPU, weight, gyroscope, video cameras, etc. A good second effort well worth buying if you don’t already have one.

What many critics fail to accept is that Apple doesn’t need technical superiority in order to succeed. They rarely have the best specs in the products they sell. It’s all about user experience and features that make good spectacle on stage and in television commercials.

Personally I find the rear camera really lame (0.7MP stills and chopped off video masquerading as full 720p), but it’s better than nothing.

The smart covers are cool and stupid at the same time. They cover the toughest part of the iPad (the glass screen that Apple has spent years telling us doesn’t need covers) while leaving the soft aluminum exposed. The magnetic attachment also bothers me. Either it won’t be enough to adequately protect against shifting in transport or there must be some powerful magnets in the iPad. I don’t think Apple should be adding extra heavy metal to a device trying hard to shed weight.


Hey Charlie you lost me at Steve Jobs looks healthy and sounds sharp. He’s a very sick man and he looks it. He’ll be dead within a year, there’s no cure for the aids virus.

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