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Analyst: Apple Underestimated Initial iPad Demand

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News Posted: Fri, Apr 2 2010 12:52 PM
You didn't really think the iPad was going to flop, did you? If early reviews are any indication, Apple is getting off to a great start, a notion echoed by Piper Jaffray analyst Gene Munster. According to Munster, Apple will likely sell between 200,000 and 300,000 iPads this weekend, which is roughly on par with the original iPhone, which sold 270,000 at launch.

"When Apple began taking pre-orders customers could pro-order for home delivery on April 3 or in-store pickup on April 3," Munster explains. "A week before the launch (on March 27) the company pushed back the shipping date to April 12 and ended the in-store reservation program for the launch. And in preparation for the launch, on March 31 Apple retail stores began calling those with iPad pickup reservations to confirm the reservation."



Munster believes it all adds up to stronger initial demand than what Apple was expecting or fully prepared for. He also believes that his initial estimates of 900,000 iPads sold in the June quarter and 2.7 million this calendar year are probably a bit conservative.

"Ultimately, both strong demand and somewhat constrained supply appear to be resulting in the fact that Apple is selling every iPad it can build."

Anyone surprised by the initial demand? Still think the iPad will flop? Post your thoughts in the comments section below.
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AKwyn replied on Fri, Apr 2 2010 1:00 PM

Apparently, putting the iPad into other things proved to be a successful endeavor. (Like the Modern Family episode I just watched on Wednesday.)

Just proves to show that if some geeks won't buy it, then the general public will buy anything that is hyped on TV.

 

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Bet you those 200-300 thousands are all iphone owners :P lol

People that know nothing don't care for the specs they just want whats new and apparently one of these is being cool xD

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Well I'll be a monkey's uncle...they pulled it off!

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Man htey are apple what can't they pull of? they can sell a apple branded paper if they wanted to! All those apple fans that think they are cool just having one would surly buy it like the ipad!

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RyuGTX replied on Fri, Apr 2 2010 4:16 PM

Inspector:

Bet you those 200-300 thousands are all iphone owners :P lol

People that know nothing don't care for the specs they just want whats new and apparently one of these is being cool xD

 

Nothing wrong with selling to your current consumer or loyal fan base. Great way to make money.

 

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AHHH.....The Turtleneck Hype machine at full speed again! Genius!! :P

They keep using the same tactics, and now one seems to notice. They were short with all IPhone releases as well. This gets people to line up in front of the store and makes great coverage on the news! I mean 300K? There are what like 300Milliion people just in the states! If they are really Geniuses then they would plan better for a full release to allow for everyone to walk into any Apple store and pick one up without any aggravation! Especially at those prices!

Have you ever noticed that they do this around the time that walking into a A-Store, is met with desolation, or should we call them A-holes. Like a empty, impersonal soulless black hole for your money! The next step, I can almost bet Ya, the Ipad software will Brick the thing or lock up from the connection. Which in turn will cause more prime time news coverage :P

Thanks to HH, we now know of many other competitors, that seem to have better features at better prices. And a couple that are just as stylish, if not more sexy.

Although if you want to run out and buy the hype...I have a bridge between kaneohe and San Diego I will sell Ya :P

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Kyouya replied on Sat, Apr 3 2010 3:53 AM

Ignorance and stupidity is being ruled in the technology world. Ipad is just...terrible. Am I the only one who thinks that consumers are so blind to look at the alternative? Ipad is just an upgraded version of a PDA that has flash memory and ram. I wouldn't be surprised if it has manufacturing problems (i.e. take note of the iMac LCD problems that has been occurring for the past 6 months). You know what I would like to see...HotHardware reviewing the Ipad. Maybe they can justify or disprove my thoughts on the Ipad with thorough testing and an unbiased impression...

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Consumers are blind, and capitalism will take full advantage of that fact. I have never been one to just jump on a pop culture bandwagon. 

When you tell people that they are getting the best, they will almost always believe it, especially if they aren't introduced to any alternatives. 

There are better tablets out there than the iPad, and yet people are forking over money to Apple like there isn't another way. 

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got to play with them a ton at work today, and while they do have a wow factor to them. I think after the first two weeks I would find it more useless and it already is... 

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animatortom:

AHHH.....The Turtleneck Hype machine at full speed again! Genius!! :P

They keep using the same tactics, and now one seems to notice. They were short with all IPhone releases as well. This gets people to line up in front of the store and makes great coverage on the news! I mean 300K? There are what like 300Milliion people just in the states! If they are really Geniuses then they would plan better for a full release to allow for everyone to walk into any Apple store and pick one up without any aggravation! Especially at those prices!

Have you ever noticed that they do this around the time that walking into a A-Store, is met with desolation, or should we call them A-holes. Like a empty, impersonal soulless black hole for your money! The next step, I can almost bet Ya, the Ipad software will Brick the thing or lock up from the connection. Which in turn will cause more prime time news coverage :P

Thanks to HH, we now know of many other competitors, that seem to have better features at better prices. And a couple that are just as stylish, if not more sexy.

Although if you want to run out and buy the hype...I have a bridge between kaneohe and San Diego I will sell Ya :P

 

You definitely get it animatortom, They produced less than the anticipated demand so they would be sure to sell out of the initial production run. It adds to the exclusiveness factor. Neintendo did it for the first year with the Wii, HTC/T-Mobile is currently doing it with the HD2 smartphone. Its a very common practice. Anyone notice the ipad apps have much higher prices for the same app? Its Apples way of weening people onto more expensive apps.

 

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Yeah Marius, that toon really sums it up.

Although you cant blame capitalism. In its roots those who are making the money have to answer to those who support them. Companies like Apple pervert it in such a way, through the use of laws and federal mandates. then everyone turns around and blames the C word!

Just like the Rappers who complain about the man, when they are actually getting their money from the man, to buy their bling.

Companies that have a good reputation, have gotten theirs through good customer service and good business practices. If a company is running good here and its own market is running strong without a need for change. Only then should they open production in China to reach other markets. Not open that production for the market here, then wonder why it all falls apart.

See, that guy there probably used to work for apple until his job got outsourced, only after he bought the Ipad of course:P

Its just like everyone running around saying you must give me respect? No, Respect is earned and not given!

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Really... Do we really need an iPad? I think most people are gonna buy it and unfortunately be a lil' disappointed. What is it really? It's a device between a phone and a laptop... Too big to be practical like a phone and is missing a keyboard and a full blown OS *so not much of a laptop* either. 

Honestly an iPod touch is much better in a sense that it is pocket-able yet almost as fast as the iPad when it comes to running basic apps.

And now when you consider speed, it's a bit disappointing.

Compared to a 300 dollar ASUS netbook, it's just pathetic. Since this product will be mainly used for the web surfing experience, you'd expect that it would be highly optimized for such a task. But NO, this isn't the case. In some cases it is HALF as fast as the netbook. That's right.. more than double the price yet half as slow. Sure it will probably be more readable on the iPad but is it really worth waiting twice as long for a page to load? Why not just take out your laptop and be done with it altogether?

Personally, I can't see myself using this iPad outside my house. Seriously, it would look so weird not to mention in broad daylight it's basically non-functional. The screen although is an IPS based panel, it's just not bright enough. EVEN a PHONE, mind you it's not any normal phone (Nexus One), has an OLED screen that's EVEN brighter.

I guess the cost of such an OLED screen deterred Apple from going with that option but it's just something to consider. Might as well wait for the second version.  

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