Apple sells 3 million iPads in debut fueling demand optimism

 

San Francisco

Apple said Monday it sold 3 million units of its iPad mini and fourth-generation iPad during the debut weekend, a sign that the new devices can help the company withstand accelerating competition in the tablet market.

"Demand for iPad mini exceeded the initial supply and while many of the pre-orders have been shipped to customers, some are scheduled to be shipped later this month," Cupertino, Calif.-based Apple said in a statement.

Apple began selling the 7.9-inch tablet in the United States and more than 30 other countries on Nov. 2, ramping up an effort to fend off competition in the market for tablets, which NPD DisplaySearch predicts will more than double to $162 billion by 2017. Amazon.com, Google and Samsung are vying for share with their own version of tablet computers.

"We estimate at least two-thirds of the units are iPad minis," Brian Marshall, an analyst at ISI Group, wrote in a research report Monday. "The iPad mini could blunt some of the competitive threat from low-priced Google and Amazon tablets."

Apple's shares gained 1.4 percent to $584.62 at the close in New York. The stock has advanced 44 percent this year.

Gene Munster, an analyst at Piper Jaffray Cos., said the company would sell 1 million to 1.5 million of the smaller version of the tablet. Walter Piecyk of BTIG Research said the company needed to sell 3 million units of the iPad mini to demonstrate adequate demand.

New Yorkers looking to buy the latest iPad had fewer stores to shop in after Hurricane Sandy resulted in power blackouts and hobbled transportation. Apple closed two of its five New York stores as well as some in New Jersey because of the damage. Even so, the 5th Avenue store sold out within a few hours after almost 600 customers lined up, according to Brian White, an analyst at Topeka Capital Markets.

"With all the extreme weather, I guess people still have time to buy an iPad," Shaw Wu, an analyst at Sterne Agee & Leach Inc., said in an interview. Given the storm conditions, Apple reported "a pretty good number" for debut weekend sales.

In the third quarter, Apple's share of the tablet market slipped to about 50 percent from about 66 percent in the prior three-month period as demand surged for competing products from Amazon and Samsung.

Worldwide tablet shipments totaled 27.8 million in the period, an increase of 50 percent from a year earlier, Framingham, Mass.-based researcher IDC said in a report Monday. Samsung shipped 5.1 million devices in the third quarter, more than double the number from the previous period. Amazon's market share increased to 9 percent from 4.8 percent.

People who ordered online are experiencing delays. Shipments for the iPad mini are held up about two weeks, according to Apple's website. The company doesn't report orders made from the website until they are delivered, according to regulatory filings.

The first models on sale work only with a Wi-Fi wireless connection. Versions that connect to the data networks of phone carriers will "ship in a few weeks in the U.S.," Apple said Monday. The iPad mini costs $329 to $529 for the Wi-Fi model, and as much as $659 for models that connect to data networks.

Piecyk of BTIG said Apple should have sold 3 million "at a minimum," given the price and number of markets where it's available.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Savvy Media Ltd: Media Sales executive - Crawley

£25k + commission + benefits: Savvy Media Ltd: Find a job you love and never h...

Austen Lloyd: Corporate Solicitor NQ+ Oxford

Excellent Salary: Austen Lloyd: CORPORATE - Corporate Solicitor NQ+ An excelle...

Reach Volunteering: Financial Trustee and Company Secretary

Voluntary Only - Expenses Reimbursed: Reach Volunteering: A trustee (company d...

Recruitment Genius: Senior Project Manager

£45000 - £65000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

In a world of Saudi bullying, right-wing Israeli ministers and the twilight of Obama, Iran is looking like a possible policeman of the Gulf

Iran is shifting from pariah to possible future policeman of the Gulf

Robert Fisk on our crisis with Iran
The young are the new poor: A third of young people pushed into poverty

The young are the new poor

Sharp increase in the number of under-25s living in poverty
Greens on the march: ‘We could be on the edge of something very big’

Greens on the march

‘We could be on the edge of something very big’
Revealed: the case against Bill Cosby - through the stories of his accusers

Revealed: the case against Bill Cosby

Through the stories of his accusers
Why are words like 'mongol' and 'mongoloid' still bandied about as insults?

The Meaning of Mongol

Why are the words 'mongol' and 'mongoloid' still bandied about as insults?
Mau Mau uprising: Kenyans still waiting for justice join class action over Britain's role in the emergency

Kenyans still waiting for justice over Mau Mau uprising

Thousands join class action over Britain's role in the emergency
Isis in Iraq: The trauma of the last six months has overwhelmed the remaining Christians in the country

The last Christians in Iraq

After 2,000 years, a community will try anything – including pretending to convert to Islam – to avoid losing everything, says Patrick Cockburn
Black Friday: Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Britain braced for Black Friday
Bill Cosby's persona goes from America's dad to date-rape drugs

From America's dad to date-rape drugs

Stories of Bill Cosby's alleged sexual assaults may have circulated widely in Hollywood, but they came as a shock to fans, says Rupert Cornwell
Clare Balding: 'Women's sport is kicking off at last'

Clare Balding: 'Women's sport is kicking off at last'

As fans flock to see England women's Wembley debut against Germany, the TV presenter on an exciting 'sea change'
Oh come, all ye multi-faithful: The Christmas jumper is in fashion, but should you wear your religion on your sleeve?

Oh come, all ye multi-faithful

The Christmas jumper is in fashion, but should you wear your religion on your sleeve?
Dr Charles Heatley: The GP off to do battle in the war against Ebola

The GP off to do battle in the war against Ebola

Dr Charles Heatley on joining the NHS volunteers' team bound for Sierra Leone
Flogging vlogging: First video bloggers conquered YouTube. Now they want us to buy their books

Flogging vlogging

First video bloggers conquered YouTube. Now they want us to buy their books
Saturday Night Live vs The Daily Show: US channels wage comedy star wars

Saturday Night Live vs The Daily Show

US channels wage comedy star wars
When is a wine made in Piedmont not a Piemonte wine? When EU rules make Italian vineyards invisible

When is a wine made in Piedmont not a Piemonte wine?

When EU rules make Italian vineyards invisible