Analyst: iPad Surpasses Expectations

| Apple Stock Watch

Apple showed off the iPad on January 27 at a special media event in San Francisco, and Broadpoint AmTech's Brian Marshall thinks the company exceeded expectations with its new tablet device.

"In our view, Steve Jobs and the Apple crew surpassed expectations with the long-anticipated unveiling of the tablet device, officially named iPad," Mr. Marshall said. "While we were impressed with the specs during the briefing given by Mr. Jobs, it was not until we actually used the iPad for about 15 minutes were we convinced this will be another grand slam product for Apple."

The iPad is a multimedia tablet device with a 9.7-inch multitouch display, built-in Wi-Fi and optional 3G wireless data connectivity, iPhone application support, and more. Apple is calling the iPad a new class of device that fits between the iPhone and iPod touch, and the company's laptop lineup.

While there has been some speculation that the iPad will cannibalize Apple computer sales, Mr. Marshall thinks it won't be because it is more of a media player instead of a laptop in tablet form. He also sees the iPad's iBooks and iBookStore ebook features as a natural evolution from the iTunes Store and App Store.

Apple's deal with AT&T gives iPad owners the option of buying 250 MB of data per month for US$14.99 without a contract, which will likely draw more buyers to the higher priced models. The downside of the no-contract model, however, is that Apple won't see high subsidy payments from cell service providers.

Mr. Marshall is maintaining his "Buy" rating and $264 target price for Apple's stock. Apple is currently trading at $199.62, down 8.26 (3.98%).

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Bosco (Brad Hutchings)

OK, this is my ah-hah moment. The iPad’s intended audience is analysts. Mr. Marshall needs one for when he is sitting on the couch in his plush office. I get it now.

But seriously, look how the guy breaks this down, on it’s potential ongoing revenue per customer rather than if anybody is actually going to want to buy one of these iFads. Hilarious. Meanwhile, Apple is just getting hammered for turning something with so much potential into the lamest thing since Microsoft Bob. Example.

Lee Dronick

“Apple is currently trading at $199.62, down 8.26 (3.98%).”

This always seems to be the case. AAPL up before the announcement and down the next day.

Dave Gnotta

As someone who travels extensively for business, I can assure you the iPad will be something I take along on every trip. Personally I see it replacing my iPod Touch as my “all in one” entertainment device, as well as adding the significantly enhanced organizational features such as the new calendar, contacts etc.Plus with the keyboard I can see it being great for taking notes in meetings. I also have high hopes for making use of the iWork apps. I do a lot of presentations with Keynote (sometimes one on one, other times to large groups) and am very anxious to see what I can do with this.

I have every intention of continuing to use both my iPhone and Macbook Pro, but Apple has it exactly right ... this is a whole new category and I for one am solidly on board.

Fahrenheit 451

Too delicate looking to travel with, and yet another device to haul along for me, so if purchased it will remain at home. Not a bad launch, but not a great launch for an Apple product. Also, too universal for my tastes which detracts from its overall appeal. I’m not a fan of the Kindle, but if the Kindle is released in a color screen version I will opt for it as my e-reader.

Lee Dronick

Too delicate looking to travel with,

I am anxious to examine one and see how robust it is. My wife is already wanting an iPad and mentioned traveling with it so that she doesn’t have to lug her iBook along. She takes public transportation to work and does a lot of her college homework while commuting. I am wondering how soon college textbooks will be available on the iPad.

For myself I am still wanting a new MacBook.

Boris Gates

I agree that the iPad is more than a home run than it is being given credit for by initial reactions.  But then, I think the AppleTV is awesome….
Anyway, the ability to use this much more comfortably and naturally than a laptop in public transportation (trains/planes/buses) makes this esp. a great thing for many, many outside of the few US cities that have any public transport.  And regarding business travel, I second the awesomeness of this device.  I anticipate this replacing me pulling out my laptop on most flights, esp. in those space constrained coach seats…  I can’t wait to own one of these deals.  I feel the same way about it as I felt about the iPod when it was announced.  Not a new idea, but the RIGHT implementation of an existing idea (like iPod/MP3 player…)
I’ll probably buy fewer additional shares of AAPL compared when the iPod surfaced given the stock price, but I still think it is a good investment.

Dean Lewis

The comment about taking notes in a meeting is interesting. A bunch of people clacking on netbook keyboards would be annoying in a meeting, in class, etc. Typing on this would be much quieter and may be something to offset not having the tactile feedback a keyboard (even a crappy netbook one) gives…

Lee Dronick

The comment about taking notes in a meeting is interesting. A bunch of people clacking on netbook keyboards would be annoying in a meeting, in class, etc.

I use one of the new Apple aluminum keyboards, it is pretty quiet, but point taken that the noise from a number of them would add up.

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