Apple sells 3 million iPads in debut fueling demand optimism
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.
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Kenya bus attack: Primary school head teacher plays dead to escape slaughter by Islamic extremists
Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
Revealed: How the world gets rich – from privatising British public services
£25k + commission + benefits: Savvy Media Ltd: Find a job you love and never h...
Excellent Salary: Austen Lloyd: CORPORATE - Corporate Solicitor NQ+ An excelle...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: A trustee (company d...
£45000 - £65000 per annum: Recruitment Genius: This is a fantastic opportunity...