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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: Apple is Now Producing 2.3M+ iPads Monthly
By sebmel on 7/7/2010 2:52:30 PM , Rating: -1
The fact that, when one visits PC forums, one comes across post after angry posts like the parent one is fascinating. What's the reason?

Teen angst about not being perceived as 'cool'?
Jealousy over more pricey gadgets?
Stockhold syndrome in long suffering Windows users?

I suspect there are a variety of reasons, a major one of which is probably those badly conceived attack ads: I'm a Mac. Apple would have been much smarter to pursue a more inclusive type of advertising ('Coke is it'... type of thing) than an attack that would be taken personally by some... even though the Windows character was funnier, and far more likeable.

By sebmel on 7/7/2010 3:20:35 PM , Rating: 2
"Quadrillity: Who cares?"

I think it's of interest to those thinking about the politics of the internet... will Apple manage to push HTML5 to the fore or will they be forced by the popularity of flash enabled devices to backtrack and implement it in iOS.

2.3 million sales of the iPad/month represents quite a market and quite a Safari browser segment to have to cater to.

Think about it this way:
Netbooks sales were the phenomenon of computer sales over the last couple of years. How many?

85 million in 2.5 years... a big important market.

If these iPad sales maintain current momentum over a similar period (remember they are only just being rolled out worldwide), without any increase at all they would make a market about 80% of the netbook market... about 70 million units (2.3 x 30months).

Back in their struggling years Apple had about 25 million active users and sold about 4 million Macs annually.

This level of iPad sales, when added to iPhone, iPod Touch and the revitalised Mac sales growth (Apple now sell in a quarter what they sold in some years) changes the politics of the web... in a good way.

That Microsoft tactic of 'embrace and extend' (the one that corrupted the HTML in IE6 and Front Page)... that's a no gamer in the face of this market... and I think that's good for PC users too. It forces competition on quality rather than gaming the standards.

So, who cares? I do. Perhaps you should too. Just a though.

Another idea:
What do you think was the impetus for Microsoft to work hard on Windows 7?

Now you might say: sales.

Well think about it. There is a danger for Microsoft in making a decent version of Windows. Software doesn't suffer failure, like hardware does.

Lets call it the XP factor: MS make a good enough version of Windows and sales can dry up. It's very hard to keep pushing the upgrade cycle if people are satisfied with what they have... especially if many of those sales are to banks who just run a browser and Excel.

Why take the risk? '95 wasn't stable... '98 sales didn't suffer
'98 wasn't stable... ME didn't suffer
ME wasn't stable XP didn't suffer.

But XP and 2000 were road blocks for Microsoft... they were good.

Vista wasn't good so it didn't hinder Windows 7... but XP is still there hampering sales.

Competition forces Microsoft to compete on quality... it forces them to produce road blocks to future versions.

Apple doesn't suffer from this because of the hardware + OS tie-in.
Microsoft can't rely on that.

So competition is our friend, in many ways.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

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