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Apple: iPad Expands Addressable Market 50M Units,
By Eric Savitz
The Apple (AAPL) iPad expands the company’s total addressable market by at least 50 million units, according to Deutsche Bank analyst Chris Whitmore.
In a research note this morning, Whitmore suggests that the iPad effectively is the company’s attempt to redefine the netbook and low-end notebook market. He thinks the devices will “compete very well” in that arena, “particularly in the segment of the market where surfing, reading, game playing and emailing dominate the usage model.” Whitmore contends Apple can take 4% of the netbook market in 2010, and 7% in 2011; he forecasts sales of 2 million units this year, and 4 million in 2011.
“At its core,” he writes, “the iPad extends and leverages the iPhone OS, the App Store and associated developer support into another very large segment of the market.”
Whitmore notes that the iPad has some clear drawbacks:
no multi-tasking
no video camera
no anti-reflective screen
no Flash support
no USB port
But he adds that “for most non-technical consumers, these features are not critical,” and some will short-comings will be addressed in the the after market. When consumers get their hands on the iPad, he thinks, they’ll focus instead on the speed, high-resolution display, easy access to apps and iTunes support.
Whitemore keeps his Buy rating and $250 price target.
By Eric Savitz
The Apple (AAPL) iPad expands the company’s total addressable market by at least 50 million units, according to Deutsche Bank analyst Chris Whitmore.
In a research note this morning, Whitmore suggests that the iPad effectively is the company’s attempt to redefine the netbook and low-end notebook market. He thinks the devices will “compete very well” in that arena, “particularly in the segment of the market where surfing, reading, game playing and emailing dominate the usage model.” Whitmore contends Apple can take 4% of the netbook market in 2010, and 7% in 2011; he forecasts sales of 2 million units this year, and 4 million in 2011.
“At its core,” he writes, “the iPad extends and leverages the iPhone OS, the App Store and associated developer support into another very large segment of the market.”
Whitmore notes that the iPad has some clear drawbacks:
no multi-tasking
no video camera
no anti-reflective screen
no Flash support
no USB port
But he adds that “for most non-technical consumers, these features are not critical,” and some will short-comings will be addressed in the the after market. When consumers get their hands on the iPad, he thinks, they’ll focus instead on the speed, high-resolution display, easy access to apps and iTunes support.
Whitemore keeps his Buy rating and $250 price target.