Tribune staff report | Apple said Monday it sold more than 300,000 iPads on its opening day,
meeting the expectations of some analysts while underscoring the
challenges the company still faces marketing the much-anticipated
device beyond early adopters.
The figures, which included pre-orders that were picked up or delivered
Saturday, were hardly exceptional despite weeks of hype about the
revolutionary nature of a new class of device that falls somewhere
between the phone and computer.
In a research note earlier Monday, Piper Jaffray analyst Gene Munster had doubled his initial forecast of first-day sales to 600,000 to 700,000, saying that “lines were longer than expected and supply was also better than expected.” But the actual numbers announced by Apple were closer to his original estimates.
Still, first-day U.S. sales of the iPad exceeded those of the original iPhone in 2007, he said. He expects Apple to sell 1.3 million iPads in the current quarter compared with the 1.1 million for the iPhone in its first full quaruer.
Sales of the iPhone have since picked up, and Apple sold 8.7 million worldwide in its latest quarter. The latest model, the 3GS, sold a million in just three days when it went on sale last summer, initially in the U.S. and seven other countries. Saturday’s iPad launch was in the U.S. only.
Eager customers stood in long lines across the U.S. Saturday to be among the first owners of a device they were expecting to be a game-changer, even if they weren’t quite sure yet how.
Once the initial iPad excitement settles, Apple may have to work harder to persuade a broader swath of people to buy one. Many companies have tried to sell tablet computers before, but none has caught on with mainstream consumers.
Apple essentially must convince people who already have smart phones, laptops, e-book readers, set-top boxes and home broadband connections that they need another device that serves many of the same purposes.
The iPad now on sale, at prices starting at $499, connects to the Internet wirelessly through Wi-Fi. Some people may be waiting for a pricier version that can access the Internet over cellular data connections. That version should be out later this month.
The iPad will also go on sale in other countries starting in a few weeks, though some Europeans made a trip to New York specifically to buy one Saturday.
Kaufman Bros. analyst Shaw Wu, who had estimated that Apple sold 250,000 to 300,000 over the weekend, said the device has the potential to be another big hit in Apple’s arsenal of products down the line with lower prices and better software for the device.
“When the iPhone was first launched, it was also somewhat of a disappointment. … But as the iPhone got more refined, with more apps, better software, not to mention better prices … then you started to see the volumes really take off,” Wu said. “We think the iPad is similar.”
He said checks of the supplier channel shows that Apple notified manufacturers to get ready for possibly 10 million units to be shipped, up from 5 million previously.
Broadpoint Amtech analyst Brian Marshall said the iPad’s weekend sales met his expectations, especially with many stores closed for Easter. He said the iPad’s Saturday sales of more than 300,000 units is about 60 percent of his weekend forecast of 525,000 — a decent showing for a product that has garnered mixed reviews.
“We’re off to a fantastic start,” Marshall said.
But he said the device won’t be overshadowing the iPhone, whose sales he expects to top $20 billion this year, eight times his forecast of $2.5 billion for the iPad.
“It’s really all about the iPhone, but the iPad will generate fantastic sales this year,” he said.
Apple, which is based in Cupertino, California, also said that iPad owners downloaded more than a million applications and more than 250,000 electronic books on Saturday.
Shares of Apple were up $1.40, or 0.6 percent, to $237.37 in midday trading Monday.
PT Barnum would be proud.
After playing with my iPad this weekend, it is certainly a different (new) experience that will change many things we do, from education, entertainment and business to a new form of multimedia electronic publishing. Not a necessity and not a computer, but like the iPod, will create new ways to learn, entertain and communicate (I see a huge market in the medical industry alone). Apple seems to do most things right, and make solid products that work well (unlike my Windows PC, which is a constant headache- but I have to have it for work). The next version of iPad will more (and a few things I would like), but Apple has done it again. I only wish they were made in the US, as we need the jobs this success will create.
Hey Liz,
What is such a constant headache about your windows PC? I would love to hear about it. Sounds like you are reapeating the tired apple company line.
Joke’s on the 300,000 people who wasted their money on a device that was not only obsolete before it was even unveiled (the iPhone is a more-capable, more-compact device) and is going to be rendered even further obsolete by the end of the month when the iPad with 3G connectability is released. And much like the problems that constrain the iPhone, such as incompatibility with Adobe Flash and Java scripts, are present with the iPad as well.
I guess if your fingers are too fat to type on an iPhone or iPod Touch, or if you need larger print because you are seeing impaired, the iPad is just the thing for you. Otherwise, I’d stick with the much more efficient and versatile iPhone or iPod Touch than simply buy this to show people I have money to throw away on cleverly marketed obsolete products.
Enough of the iPod coverage already.
Apple fan boys must do the writing for all the online media technology departments.
Hi Mike. Headaches with our Windows PCs…. where do I start. The first mistake was when our company tried to “update” to Vista and half of our software and applications would not work for a year (some never worked). We ended up going back to XP. The constant IT support required to keep Windows running is great for job creation, but a necessity that the folks in the creative department with Macs do not have. We also have the typical freezing up in certain applications in Windows, and usually the help of IT can get this straightened out in a few days, but not always. Viruses and conflicts are also something that has been a headache in Windows, and we have a nice collection of PCs in our storage area that no longer work- some are only a couple of years old. Others may have different experiences, but for us, Windows is mediocre at best (requires tech support to keep going), but necessary for our enterprise software. Most of the top execs have upgraded to Mac OS X Macbooks, however. I am not repeating the Apple company line- when Windows works, it works very well- but the Macs seems to be a much better product. They “just work” all of the time.
Correction… “iPad”
Liz – the success from products like the iPad create many jobs here, regardless of where they are manufactured. Unfortuately, if the iPad were manufacturered in the United States–or any other developed country–then you wouldn’t achieve nearly the utlization rate…which would keep this and other technologies only in the hands of a relatively few “well to do” people. So strangely enough, by manufacturing these iPads in places like China, you lose a few hundred or thousand manufacturing related jobs, but you create a lot of other related jobs here, and, achieve the ultimate goal which is allowing people of a much wider economic status to be able to participate.
I love cranky know-it-alls who actually know nothing about Apple products deride Apple products. Why don’t you come over from the dark side and see the light? I’ve been on Apple my entire computer life, personally and professionally, and the difference is staggering. My pc friends try Macs and are instantly converted. It’s so easy to complain when you are clouded by self-righteous ignorance. Nice job, Stever. Another winner that will change the way people live. To you others who will never experience it: Bite my Apple.
i am truly amazed by the need for some in our society to have the “new” thing – to each his own. i am curious, what would be the use in which you need something like this on the first day it comes out?
Right Liz, apple products just work, which explains why thousands downgraded to earlier versions of iTunes when it was recently upgraded.
I just dont get it, its not a laptop and its not a phone, what is it and why do I need all those apps?
I love all these comments about not “needing” the ipad. who needs to have or do any of the crap that we have today? cell phones, laptops, 50 inch hdtvs, multiple cars per household, how many billions spent in bars in each year, etc and no one seems bothered by this. but for some reason with a $500 ipad people seem like all they have are food, water, and shelter. if you choose to spend your money on it- great and if not- great for you. Why do people care what other people spend their money on?
Thank you 300,000 beta testers…. i will wait for the 3rd generation.. this is a want and a toy not a practial must.
So i will buy the one that has the ability to run TWO programs at once…. astounding concept I am know.
I have two words LAZER DISCS!
@jeffs, I guess the fact that Apple’s having a press conference about their OS4 for iPhones and iPads on Thursday, which will almost certainly include multitasking, wasn’t on your radar. I have two words: Research first.
@jim, did it ever occur to you that maybe people WANT to do certain things on a larger screen or use apps that actually need more real estate to have all the features visible at once? If your whole life’s livable with your phone, then I assume you have no laptop or desktop? If you do, then WHY? I assume you also have a 13″ television in your house, right? It’s more compact, after all. And I would rather live without crazy-happy Adobe products. Everyone knows what a nightmare they are, and SOME of us use the web for more than video trolling.
“I have two words LAZER DISCS!”
@jeffs: You’d think that since you only had two words, you could manage to spell them both correctly.
If you haven’t used the iPad, you have no place to deride it. It’s awesome. I sold my iPhone (tired of the data plan cost when I was usually using it with Wi-Fi), actually, before getting the iPad. The screen quality is incredible compared with the iPhone and iPod Touch, and trust me, that extra real estate makes it much better to use. Give the developers time to make more great apps, and people will see why it makes sense. Just surfing the net on it is a joy compared with the MacBook, iPhone, and iPod Touch we have had in the house.
mack: You respond to Liz’s woes — messed up operating systems, tiresome and constant tech support, unusable equipment and a major FAIL operating system launch — by referencing iTunes upgrade problem which affected nobody I know? GREAT argument.
I’m waiting for the next gen or two of iPads that allow me to do more with photos (take, edit, archive, etc).
I’m not opposed to reading my daily newspaper on an iPad, and some of my magaqzines as well.
Books are another matter. If I go exclusively to e-books, what will I put on my shelves where a lot of old friends already reside? Not exactly a real book-lover’s device, I think.
Got my iPad Saturday and I really do like it. The people who are complaining about lack of Flash don’t understand today’s web. Flash is very 1990’s. If a website is designed correctly, it uses HTML5 which eliminates the need for Flash. Yes, certain sites like Hulu use flash but if a company is smart, they will devise a site that works with the iPad. ABC released an app this weekend in which you can watch all ABC shows on the iPad. Hulu is developing an iPad app also. The iPad (and others like it) have the potential to be the biggest media delivery ever.
The 300,000 units “sold” is not all in the first day. This includes all the pre-sales, and these are one-offs from the Apple faithful. Also, every iPad picked up by Best Buy counts as a sale on Saturday, and not all of these have been sold. Given the amount of money Apple spent promoting this thing, it’s not that impressive. I’ll get one when it comes with a camera, and USB, at least. Oh it has to cost less.
Hey JoeB, I’m not defending the piece of junk that is known as Vista, I curse mine everyday, but the overarching statement that apple “just works” is tiresome and inaccurate. Itunes was just one example of that, and just because something doesn’t affect people you know doesn’t mean it isn’t true. That is the definition of a bad argument.
Love my iPad, love my iMac
To bad all you haters just don’t see the light
you’d think that all these people burning their money on junk like PC’s would think twice before hating on stuff that actually works, and works well … instead of wasting your time on boards like these ripping on Apple products, why don’t you waste a few more dollars on fix-it programs, virus scanners, crappy operating systems or crashing motherboards … hurrah for you !!! Sheep of father gates …