ASP for iPads has been ~$600 in the past. It might drop a bit, now that Apple has lowered the entry price point (or could rise, as LTE pulls more people away from WiFi only).
It costs them around $300 (Can't say exactly, however the LTE version was pegged at $330, could be less depending on volume deals) they are making a sizable portion of that 1.8bil in net profit.
It's pretty impressive that an unsubsidized mobile device in the $500+ price range is putting up these numbers. Does anybody besides me think this indicates consumers are replacing their old "real" computers with iPads?
More than one third of US households have more than one PC. It’s probably a good assumption that most US households with iPads will keep at least one PC, but it’s very possible that many households are replacing their second or third PCs with iPads. After getting an iPad many households might not replace their kitchen or living room PC once it breaks. Maybe kids will get an iPad instead of a cheap laptop.
It would actually be very interesting to look at that question more closely. I’m not sure whether there is already data out there.
I think it’s important to emphasize that for the iPad to supplant PCs, people don’t have to ditch every PC they own. Many own more than one.
Anecdote: I got the new iPad, my wife liked it and I asked her if she preferred it to her computer (White Macbook) she said that she did so I placed an order for another iPad and her computer is going up on ebay.
You are exactly right. Non-ipad PC sales have been flat to declining basically since the ipad was released. People are not buying as many PCs as you'd expect, they are buying ipads instead.
It's hard for me to see someone who grew up around computers switching to today's tablets. Producing anything (even a simple email) is radically faster on a computer. Consumption is even faster on a computer (key bindings, indirect input that doesn't block the screen) and more comfortable, at least while sitting down (head positioning). For the old market it seems like they could benefit from something like a chrome book just as well -- a really dumbed down computer where you don't need to install things, have windows, or anything us hackers tend to expect computers to do.
Not sure about that. I know lots of people under 40 years old who can't touch type. Hunting & pecking on a multi-touch keyboard is no worse than a physical keyboard. Probably better thanks to predictive typing and universal spell-check.
Speaking from personal experience. I use my Macbook Air at work and to do heavy duty document writing/coding, and my Macbook Pro for recording music and photo post processing.
At home or on the move, when I don't need to be VPNed in, a lot of time is spent on the iPad for browsing, magazine/news reading, email, document reading, etc (admittedly I read books more on the Kindle). It's the form factor and easy touch experience that I really like.
I think at netbook sales have gone down a lot (and that used to be the "hot" trend in PC sales before that because they were so cheap). That would sound logical as many people wanted a netbook as a "couch PC", and the iPad fits better in this setting.
I know at least one couple personally that has said they don't use their laptop anymore.
Another anecdotal point, we got iPad 2's at Christmas for my mother (in her 60's) and father in law (in his 80's) both have picked up using them really easily and it makes my life as family IT support person quite a bit easier!
Probably more often they are just choosing not to replace their aging computers. Any PC within the last 5 years is good enough for most people. What's the incentive to spend $500 on a new PC? As long as the old PC continues to work I don't think they're going to be throwing it in the garbage to use the iPad exclusively but it will definitely collect dust and eventually when it dies it probably won't be replaced.
Residents tend to be reasonably well clustered in terms of socioeconomic factors, and we know that at least one resident exists for whom this is a reasonable purchase.
If we assume the 3x10^6 sales are all US (false, but good to some order) and estimate the US population at 300x10^6, then the expectation is roughly 1:100 that a random person will order a unit. Conditioning that on socioeconomic factors should yield a reasonably high probability that if you ordered one, so did several of your neighbors.
As a contrast, I was the only resident who had an iPad 2 delivered during the launch weekend.
There are 300 apartments in my building, and I'm actually in the minority demographically (my building is ~ 1/3 diplomats, 1/3 graduate students, and 1/3 "other"). I suspect for the "other" though, that we're all at least in a moderately similar socioeconomic bracket.
From people I've talked to in my family and others (non-technical folks) the idea of purchasing an iPad when it first launched wasn't incredibly alluring for anyone who's not an early adopter. Regular buyers like to wait until 1) reviews are available, 2) updates are out to fix bugs, and 3) the vague "quirks" are worked out in a device before pulling the trigger. $500-800 is a big investment for people buying a device to use on their couch, casually.
But now that the third generation is out, and it has an amazing new screen, great battery and extremely fast wireless (and, presumably, no "quirks" that people might think had been present in the earlier models) it's thought to be a safer buy. It's not the first model, it's been out a few years, Apple knows what they're doing by now, they've seen commercials and know people that have one, etc. So what were they waiting for? The new one to come out. And it has.
I think the buyers this weekend weren't merely Apple fans with iPad 1s and 2s who wanted to upgrade, but lots and lots of new owners who have been waiting patiently for a good reason to whip out their credit cards. For this reason I think overall sales of the new iPad are going to be totally insane.
I'm a new owner myself. I've been following Apple since I bought the first generation iPod (paid way too much for it) when it first came out. I noticed how fast and often Apple releases their upgrades, and I taught myself to wait (hard to do) whenever I decide to buy a new Apple product.
I didn't get an iTouch till it's 3rd generation, didn't own a smartphone till iPhone 4, and didn't get a MB till the Unibody design came out.
And now I will own my first iPad in an hour once I get home from work. The delay due to getting the engrave option.
So yeah, count me as one of those that's finally getting an iPad :D
Ditto, mathematically, most of the users are not the early adopters. I'm also not one, and I'm certainly more typical "average" guy: my first iPod was Shuffle(!), the first iPhone the 4 and it's much more convenient than I was able to imagine even if I really, really miss the possibility to use it as a simple "flash disk."
I've bought an iPad 2 for my parents. I expected that USB will work with the "apple camera connection kit" but it doesn't. Still I'm going to order the new iPad. Even if I miss some things that competition has, I consider overall feeling really worth the investment both for the iPhone 4 and the iPad.
Apple and other companies offer a free engraving option, because you can not return them afterwards. Still, why would you return it anyway, it is a great machine.
I fit mostly into those descriptions, and I definitely consider myself a tech person. An iPad has never been something I really needed, so I waited. Now that they are on v3 with the amazing new retina display (which is one of the features I really really wanted), I found myself preordering one on opening day.
Regular buyers like to wait until 1) reviews are available, 2) updates are out to fix bugs, and 3) the vague "quirks" are worked out in a device before pulling the trigger.
Really now?
1. Apple has love/hate relationship. Most people don't care about review, as long as its a new Apple product. iPhone4 initial sales prove that, even after major websites couldnt recommend it, sales were through the roof anyways.
2) Updates are being pushed automatically. You can decline, but why would you wait to buy a device because update iOS 5.6.1.2 didnt come out yet? Hardware issues are very rare - of course the antnae/grip case, but apple offered free of charge help anyways - and you could always "hold it different way" :)
I think many regular buyers ask their friends for recommendations. If most of these friends don't have a problem with the iPhone 4 reception, they're going to buy one anyway. (As for the initial sales, major web sites hadn't discovered the antenna problem , and most reviews recommended it AFAIK.)
1) Most people don't give a crap that its 'Apple' that even makes the iPhone, or the iPad. Were the iPhone 4 reviews bad? I don't remember there being bad reviews anyway.
2) People dont care about what version number the OS is.. but they know 'new' is better than 'old'.
2) yes but you go to Apple and want to buy something and tell them: oh let me wait for next iOS version because it will be new. the response will be that your Apple device will tell you when it can update itself.
I actually think Apple kind of cannibalizing (monetary-wise) itself with the fact that 4th gen iPod, for example can update itself all the way from ios4 to 5. But of course, before bunch of downvotes come in, I think its a good approach that they don't take advantage of this fact and let you enjoy your old device with newest software.
Most people are skeptical of new devices but the good ones spread organically. You take your ipad home, next thing you know your whole family wants one. Your kids take it to school, their friends want one. You take it to work, your boss wants one... then his boss wants one, then the whole executive staff gets ipads (which they take home...).
Apple sold 3 Million iPads. That number DOES NOT include preorders of the device, which went live the day the product was announced. Why didn't Apple include the preorders?
I'm not sure why the author of the cnet article says preorders aren't included because Apple's press release doesn't ever say they're not.
I'm guessing he's just assuming they're not included because it was possible to preorder before Friday and Apple's release says it has sold 3 million "since its launch on Friday". But I imagine Apple is considering the preorder to turn into a sale on Friday.
This is good logic but its impossible to know who is buying all the ipads. Whenever I see real customers behind an online store of any sort, they are almost always completely different from what myself and the store owner would imagine.
The iPad probably has the most impressive hands-on-upsell of any device I've seen since the iPod. Apple has sold about 60 million iPads so it might not be unreasonable to think another 200-300 million people have had some hands-on experience with an iPad by now. This is exactly how the iPod built its momentum.
I wonder how much revenue AT&T/Verizon are booking because of data plans for the iPhone and iPad. The total combined revenue from iOS hardware, data plans, and apps from the App Store must be frighteningly large.
"The haters offer their assessment. The forums are ablaze with vitriolic rage. Haters pan the device for being less powerful than a Cray X1 while zealots counter that it is both smaller and lighter than a Buick Regal. The virtual slap-fight goes on and on, until obscure technical nuances like, “Will it play multiplexed Ogg Vorbis streams?” become matters of life and death."
It will be hard to find a press release that has more feature-related buzz words than this:
CUPERTINO, California―March 19, 2012―Apple® today announced it has sold three million of its incredible new iPad®, since its launch on Friday, March 16. The new iPad features a stunning new Retina™ display, Apple’s new A5X chip with quad-core graphics, a 5 megapixel iSight® camera with advanced optics for capturing amazing photos and 1080p HD video, and still delivers the same all-day 10 hour battery life while remaining amazingly thin and light. iPad Wi-Fi + 4G supports ultrafast 4G LTE networks in the US and Canada, and fast networks around the world including those based on HSPA+ and DC-HSDPA.
How usable is it if you don't own any computer running either Mac OS X or Windows? Doesn't it still need iTunes to upgrade itself etc, or can you buy it as a stand-alone computer for casual browsing and games?
Upgrades can all happen over the air now, and you don't need a PC to sync with for start up either. I haven't plugged my iPad 2 into my mac since iOS 5 came out, you should be fine.
It actually doesn't need to be activated on a computer anymore. iOS 5+ allows the user to activate and start using their device without ever connecting it to a computer, and updates are also over the air.
This is more real for me. I so much prefer reading magazines on this iPad than in 'real' life form.
Its interesting that successful digital magazines are like 'print' and not like 'web'. I enjoy the Economist and WSJ and NYT etc when they just have print, pictures, and perhaps a short video snippet.
Unsuccessful magazines to date either try to animate / annoy with ads and/or charge more (or extra) for digital content.
The learning process is painful but I recently checked out the Endgadget's 'distro' magazine and its actually quite readable and useful so there are 'new media' folks arriving, 'old media' folks figuring it out, and people who aren't adapting I expect will die.
Now if we could bring back BYTE magazine in this form it would totally rock.
There's been plenty of reports lately, that average people cannot tell the difference between an iPad 2 and 3. What do HN users who have both think about this? Are these true or exaggerated? If it's true, then what does the new iPad breaking sales records means? That apple can pretty much sell anything with the right marketing at this point, no matter how innovative its technology may or may not be?
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[ 3.8 ms ] story [ 109 ms ] thread$750 per?
$2.25B in revenue in a weekend. not bad.
$1.8B in revenue in a weekend, still not bad :P
Also, the iPhone 4s sold 4 million in its opening weekend. http://www.apple.com/pr/library/2011/10/17iPhone-4S-First-We...
I couldn't find an apple press release for the iPad 2, but a lot of news outlets reported that analysts had sales pegged around 1 million units. http://blackfridaymagazine.com/apple-claims-record-weekend-f...
More than one third of US households have more than one PC. It’s probably a good assumption that most US households with iPads will keep at least one PC, but it’s very possible that many households are replacing their second or third PCs with iPads. After getting an iPad many households might not replace their kitchen or living room PC once it breaks. Maybe kids will get an iPad instead of a cheap laptop.
It would actually be very interesting to look at that question more closely. I’m not sure whether there is already data out there.
I think it’s important to emphasize that for the iPad to supplant PCs, people don’t have to ditch every PC they own. Many own more than one.
How many people do you personally know who's computer use is all on a tablet and don't use a PC anymore?
It's hard for me to see someone who grew up around computers switching to today's tablets. Producing anything (even a simple email) is radically faster on a computer. Consumption is even faster on a computer (key bindings, indirect input that doesn't block the screen) and more comfortable, at least while sitting down (head positioning). For the old market it seems like they could benefit from something like a chrome book just as well -- a really dumbed down computer where you don't need to install things, have windows, or anything us hackers tend to expect computers to do.
Speaking from personal experience. I use my Macbook Air at work and to do heavy duty document writing/coding, and my Macbook Pro for recording music and photo post processing.
At home or on the move, when I don't need to be VPNed in, a lot of time is spent on the iPad for browsing, magazine/news reading, email, document reading, etc (admittedly I read books more on the Kindle). It's the form factor and easy touch experience that I really like.
I know at least one couple personally that has said they don't use their laptop anymore.
That seemed like a pretty high number for a single apartment building in Washington D.C.
For what it's worth, I'm incredibly happy with it so far.
If we assume the 3x10^6 sales are all US (false, but good to some order) and estimate the US population at 300x10^6, then the expectation is roughly 1:100 that a random person will order a unit. Conditioning that on socioeconomic factors should yield a reasonably high probability that if you ordered one, so did several of your neighbors.
As a contrast, I was the only resident who had an iPad 2 delivered during the launch weekend.
There are 300 apartments in my building, and I'm actually in the minority demographically (my building is ~ 1/3 diplomats, 1/3 graduate students, and 1/3 "other"). I suspect for the "other" though, that we're all at least in a moderately similar socioeconomic bracket.
Or, $25 MILLION PER HOUR.
EDIT: assuming that is in 48 hours, that equals 37.5 MM per hour in revenue.
What company has produced such revenue in some other space. Any?
I am sure the revenue for the Oil Industry is higher, globally, but for one company? That is insane.
I sold my apple stock at $200 :(
But now that the third generation is out, and it has an amazing new screen, great battery and extremely fast wireless (and, presumably, no "quirks" that people might think had been present in the earlier models) it's thought to be a safer buy. It's not the first model, it's been out a few years, Apple knows what they're doing by now, they've seen commercials and know people that have one, etc. So what were they waiting for? The new one to come out. And it has.
I think the buyers this weekend weren't merely Apple fans with iPad 1s and 2s who wanted to upgrade, but lots and lots of new owners who have been waiting patiently for a good reason to whip out their credit cards. For this reason I think overall sales of the new iPad are going to be totally insane.
I didn't get an iTouch till it's 3rd generation, didn't own a smartphone till iPhone 4, and didn't get a MB till the Unibody design came out.
And now I will own my first iPad in an hour once I get home from work. The delay due to getting the engrave option.
So yeah, count me as one of those that's finally getting an iPad :D
I've bought an iPad 2 for my parents. I expected that USB will work with the "apple camera connection kit" but it doesn't. Still I'm going to order the new iPad. Even if I miss some things that competition has, I consider overall feeling really worth the investment both for the iPhone 4 and the iPad.
Really now?
1. Apple has love/hate relationship. Most people don't care about review, as long as its a new Apple product. iPhone4 initial sales prove that, even after major websites couldnt recommend it, sales were through the roof anyways.
2) Updates are being pushed automatically. You can decline, but why would you wait to buy a device because update iOS 5.6.1.2 didnt come out yet? Hardware issues are very rare - of course the antnae/grip case, but apple offered free of charge help anyways - and you could always "hold it different way" :)
1) Most people don't give a crap that its 'Apple' that even makes the iPhone, or the iPad. Were the iPhone 4 reviews bad? I don't remember there being bad reviews anyway.
2) People dont care about what version number the OS is.. but they know 'new' is better than 'old'.
2) yes but you go to Apple and want to buy something and tell them: oh let me wait for next iOS version because it will be new. the response will be that your Apple device will tell you when it can update itself.
I actually think Apple kind of cannibalizing (monetary-wise) itself with the fact that 4th gen iPod, for example can update itself all the way from ios4 to 5. But of course, before bunch of downvotes come in, I think its a good approach that they don't take advantage of this fact and let you enjoy your old device with newest software.
Apple sold 3 Million iPads. That number DOES NOT include preorders of the device, which went live the day the product was announced. Why didn't Apple include the preorders?
http://news.cnet.com/8301-27076_3-57400231-248/apple-3-milli...
I'm guessing he's just assuming they're not included because it was possible to preorder before Friday and Apple's release says it has sold 3 million "since its launch on Friday". But I imagine Apple is considering the preorder to turn into a sale on Friday.
"The haters offer their assessment. The forums are ablaze with vitriolic rage. Haters pan the device for being less powerful than a Cray X1 while zealots counter that it is both smaller and lighter than a Buick Regal. The virtual slap-fight goes on and on, until obscure technical nuances like, “Will it play multiplexed Ogg Vorbis streams?” become matters of life and death."
CUPERTINO, California―March 19, 2012―Apple® today announced it has sold three million of its incredible new iPad®, since its launch on Friday, March 16. The new iPad features a stunning new Retina™ display, Apple’s new A5X chip with quad-core graphics, a 5 megapixel iSight® camera with advanced optics for capturing amazing photos and 1080p HD video, and still delivers the same all-day 10 hour battery life while remaining amazingly thin and light. iPad Wi-Fi + 4G supports ultrafast 4G LTE networks in the US and Canada, and fast networks around the world including those based on HSPA+ and DC-HSDPA.
Then again, it's Apple so it doesn't matter :)
Otherwise, it's very usable without a computer, now with over the air updates.
edit: oops, I guess I'm wrong.
Backup to iCloud (5GB included for free).
Its interesting that successful digital magazines are like 'print' and not like 'web'. I enjoy the Economist and WSJ and NYT etc when they just have print, pictures, and perhaps a short video snippet.
Unsuccessful magazines to date either try to animate / annoy with ads and/or charge more (or extra) for digital content.
The learning process is painful but I recently checked out the Endgadget's 'distro' magazine and its actually quite readable and useful so there are 'new media' folks arriving, 'old media' folks figuring it out, and people who aren't adapting I expect will die.
Now if we could bring back BYTE magazine in this form it would totally rock.
[1] http://www.youtube.com/watch?v=iox5Q2nWi-Q
[2] http://gizmodo.com/5894094/we-people-an-ipad-2-told-them-it-...
[3] http://www.latimes.com/business/technology/la-fi-tn-differen...