UPDATE 2-Apple iPad 2 sales seen clearing 1 million units

Mon Mar 14, 2011 11:18am EDT

* Estimates range up to 1 mln unit in debut weekend

* iPad 2's success a roadblock for rivals-analysts

(adds analyst comment, share action)

SAN FRANCISCO, March 14 (Reuters) - Apple Inc (AAPL.O) sold close to 1 million units of its next-generation tablet computer during its debut weekend, analysts estimated.

By comparison, the original version of the iPad, which launched in April of 2010, crossed the one-million mark 28 days after its launch. [ID:nN03193218]

Apple shares rose 0.6 percent to $354.20 in morning trade on the Nasdaq, even as shares of many other technology companies slumped. The Nasdaq was down 0.7 percent.

The iPad 2 went on sale in the United States on Friday evening at Apple stores, AT&T (T.N) and Verizon Wireless (VZ.N) (VOD.L) outlets, as well as Target (TGT.N), Wal-Mart (WMT.N) and Best Buy (BBY.N) stores, greeted by thousands of eager customers [ID:nL3E7EB0H6] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Take-A-Look on Apple's Jobs [ID:nN25168779] Breakingviews: Apple cool with corporate [ID:nN02257620] Factbox comparing the iPad with rivals [ID:nN02283353] Analysis on iPad sequel [ID:nN01124171] iFixit's teardown of the iPad 2: here Graphic comparing iPad 2 vs iPad 1 link.reuters.com/kus38r Graphic comparing tablets, smartphones r.reuters.com/fax25r Graphic of Apple's shares during product launches r.reuters.com/cup38r

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Ticonderoga Securities analyst Brian White said it was difficult to find an iPad 2 over the weekend.

"Our field checks over the weekend indicate that the iPad 2 sold out at every Apple and non-Apple store we contacted," White wrote in a research note. "In fact, all the stores had worked through iPad 2 inventory by Saturday afternoon, and there were no new iPad 2 deliveries on Sunday."

Wedbush Securities analyst Scott Sutherland said: "We would not be surprised to see Apple sell closer to 1 million iPad 2's in the opening weekend."

Best Buy (BBY.N) on Friday said some of its outlets ran out of the tablet and its accessories within 10 minutes. [ID:nL3E7EB0H6]

The newest iPad is thinner, faster and features a pair of cameras for video chat. The pricing remains the same as the first-generation model, starting at $499. [ID:nL3E7E20BI]

The iPad 2's early success is a warning sign of a global tablet bubble, where supply could outpace demand for tablets by about 36 percent, said J.P. Morgan analyst Mark Moskowitz.

Samsung (005930.KS) and Motorola (MMI.N) have already launched tablet devices, while Blackberry maker RIM RIM.TO RIMM.O and Hewlett-Packard Co (HPQ.N) are set to release similar products in coming months.

Apple's share of the tablet market is expected to be 61 percent in 2011, whereas whereas the company's rivals are likely to have a tough time attracting customers, Moskowitz wrote in a note.

The iPad 2 will launch in 26 more countries on March 25. (Reporting by Gabriel Madway and Jennifer Robin Raj; Editing by Saumyadeb Chakrabarty and Derek Caney)

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Comments (2)
JoeKrolik wrote:
If the estimates shown above hold true when the final tally comes out today or tomorrow, then I was proved to be absolutely correct when I made this prediction two weeks ago. Next challenge: 17 more days as this is written for my prediction of $400 to $450 a share to come true. The stock is up in a down market even with tons of outside pressures to go against. We shall see….

Mar 14, 2011 11:30am EDT  --  Report as abuse
dannnnnR wrote:
For me, it’s not about ‘which’ tablet, but ‘why?’ I see many people come into university class with a netbook or laptop. Even iPhones and AndroidPhones, etc.

I’m not seeing tablets. Mr. Jobs is leading the market in this iToy category, but he hates pen-input, voice-recognition, or even some kind of thin, strip-off membrane keyboard or something. It’s all a read-only, web, game, experience, camera this-way, camera that-way. A $600 dollar crayon-box, and the other companies are playing catch-up in this brain-damaged paradigm.
.

Mar 14, 2011 3:42pm EDT  --  Report as abuse
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