With 2 million iPads sold in 58 days, Apple’s new tablet is coming on strong, but the iPhone will still be the device that drives the company’s shares, according to Broadpoint.AmTech analyst Brian Marshall.
“Despite the enormous success the iPad has enjoyed over its first 60 days, it is our view the international ramp of the iPhone remains the dominant driver of Apple shares in calendar year 2010,” Mr. Marshall said.
Mr. Marshall is currently estimating Apple will sell some 40 million iPhones by the end of 2010, and another 50 million in 2011.
Despite his claim that the iPhone will drive Apple’s stock, Mr. Marshall is optimistic about the iPad’s success. “Amazingly, in its first quarter of introduction, we believe the iPad family will easily exceed 10 percent of Apple’s total revenue for the June 2010 quarter (approximately $1.6 billion of $14.6 billion),” he said. “Recall it took the iPhone two quarters to achieve the same feat.”
Mr. Marshall is now predicting Apple will hit the 2.5 million mark for iPad sales in June, will sell 10 million by the end of the year, and will sell 17 million in calendar year 2011.
Looking forward, Mr. Marshall estimates Apple’s revenue will hit $64.5 billion by the end of 2010, up from his earlier prediction of $62.6 billion. For 2011, he’s modeling $72.7 billion, up from $71.7 billion.
Mr. Marshall is rating Apple as Buy, and is raising his target price for the company’s stock from $320 up to $340. Apple is currently trading at $263.45, up 6.57 (2.56%).