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Despite iPhone issues, life is good for Apple, thanks to the best-selling iPad

In response to record demand for the Apple iPad, Apple, Inc. is stepping up its production efforts.  As of last month the Cupertino giant topped 3 million units sold worldwide.

Apple originally set a goal of reaching production of 2.5 million units a month to be reached by December, but it now appears that it may hit that number well ahead of schedule, in response to high demand.

According to Digitimes Research:
Apple is estimated to have outsourced 2.3-2.35 million iPads to Taiwan players in July with 58-60% for the Wi-Fi and 3G hybrid model despite Wi-Fi only models having stronger sales in the first half of 2010, Kuo noted.
That's up greatly from the 1.2 million units that Digitimes Research estimated in June.  And it's way above the 700,000 units that the iPad began shipping per month at launch in April (U.S.).

The move indicates two things -- first that Apple plans on selling a lot more iPads, and second that it's trying to push the public to make those sales of the more lucrative 3G-ready iPad (a move its U.S. carrier AT&T is surely excited about).

The wildest analyst estimates pegged the iPad at selling 8 million units this year.  If Apple can continue to quickly ramp up production, though, it stands to sell as many as 16-18 million units this year.  We'd be conservative, bumping our previous estimate to 15 million units for the year.

This terrific sales success is great news for Apple on a number of levels.  First, it establishes the company as the top player in a promising emerging market.  Second it should lead to a "halo effect" boosting sales of other Apple products.  And finally, it should help Apple to overcome the negative publicity of the numerous issues that the iPhone 4 suffered -- including signal woes, proximity sensor malfunctions, and not fully cured sealants.

Later this month the iPad will come to more countries overseas, including Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico, Netherlands, New Zealand and Singapore, which should help to continue to stoke the sales flame.

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RE: Word
By Solandri on 7/6/2010 2:24:14 PM , Rating: 1
Several other OEMs did take a shot at it. The reason it hasn't worked until Apple did it is the same reason the iPod now dominates the MP3 player market despite a substandard feature set and exorbitant pricing - the user interface is simple, clean, and effective. Previous attempts at the tablet format were crippled by Microsoft's Windows for Mobiles OS. While Windows may be fine for the desktop (people who've used a Mac may call it "adequate"), as a tablet OS it really, really sucks.

Like you I despise how Apple has locked down just about everything with their products and refuse to buy one because of it. But there's one thing they do, they've always done, right - user interfaces. Clean, simple, and effective - people like that, and it drives their sales. Apple thinks about what the end-user experience will be like, and builds their UI around that. Not the other way around.

The reason Linux hasn't taken off is because the developers (bless their hard work) do it the opposite way. They frequently have a certain vision for how the UI should work and build around that with little consideration for the end user. What results is a confusing, inconsistent, and frequently clumsy conglomeration of different UIs with endless opportunities to confuse r the end user. The CUPS graphical configuration applet a few years back was a perfect example. It required you to pick just about every option available, which was great for the developers. But for end users who didn't know the technical details about printer drivers and configuration, they practically had to learn everything the developers knew in order to navigate the interface. It didn't even have default "common sense" choices - a neophyte end user had to guess which settings would be best for him.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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