Apple iPad Sales Reach 1 Million
On the same day that Apple launched its newest iPad tablet, the company also sold its 1 millionth iPad, less than a month after the device's debut.
Apple officials announced May 3 that the company sold its millionth iPad April 30, and that iPad users had to that point downloaded more than 12 million applications from the App Store and more than 1.5 million ebooks from Apples new iBookstore.
"One million iPads in 28 days -- that's less than half the 74 days it took to achieve this mileston with the iPhone," Apple CEO Steve Jobs said in a statement. "Demand continues to exceed supply and we're working hard to get this magical product into the hands of even more customers."
That demand was highlighted April 30, when Apple launched the newest iPad tablet with both WiFi access and 3G connectivity via AT&T. Officials with Apple retail locations in major cities said they sold out of the iPad 3G models by May 2.
In a May 2 research note, Piper Jaffray analyst Gene Munster estimated that Apple sold about 300,000 iPad 3Gs over the weekend, including preordered units and online sales.
With estimates based on checks with 50 Apple stores-49 of which reported being out of stock of 3G models by Sunday-Munster believes Apple has likely now sold more than 1 million iPads in total.
In May 2009, Munster was among the very first to report that Apple was at work on a slatelike device, which at the time he estimated would run between $500 and $700. Today, Apple sells six versions of the iPad-three with WiFi only and three with WiFi and 3G-with pricing from $499 to $829. On May 3, all six were listed on the Apple site as shipping not within 24 hours but "within 5 - 7 business days."
Customers on the Apple site are limited to purchases of just two devices.
Just as Apple is known for modest financial projections-enjoying a wow factor on a then expectation-exceeding delivery-it's unclear just how well it stocked its stores.
The newest iPad went on sale April 30 at 5 p.m. at the New York flagship store, and a spokeswoman for Best Buy said the store had "very limited inventory" for sale that afternoon, according to the Wall Street Journal.
Munster, however, wrote that the sold-out supplies were likely due to strong demand coupled with lower-than-intended supply.
"Near-term, this may put downward pressure on launch day/weekend statistics, but long-term we see it as a positive, as consumers are definitely interested in the iPad as a new category," wrote Munster. "In the first several quarters, we believe Apple will sell about 60 percent WiFi-only iPads and 40 percent 3G models."
At eBay.com, a May 3 search for iPads turned up more than 1,800 matched listings, more than 1,200 of which were WiFi-only models-which suggests that the same early supporters who rushed to buy the WiFi-only model may be ready to pass on their iPad and be amongst the first Apple fans with an iPad 3G.
Broadpoint AmTech analyst Brian Marshall, who headlined an April 22 report "Money Doesn't Grow on Trees? Try the Apple Tree," raised his calendar year 2010 revenue estimates for Apple to $62.6 billion, up from $57.9 billion.
"Once again, we highlight our view that Apple remains the best technology company on the planet with numerous catalysts on the horizon-e.g., international iPhone ramp, iPad ramp, emerging recurring revenue stream, etc.-and no business model issues," Marshall wrote.
The firm has noted the potential for swift iPad sales from the start, with Marshall writing in a March research note, before the WiFi-only iPad's launch, that early consensus of the device was "overly pessimistic," and that, were the iPad to "live up to its potential, we believe actual unit shipments could approach 7 million-plus units in ."