Apple at the 2 million iPad mark: Rivals swamped by platform

Apple at the 2 million iPad mark: Rivals swamped by platform

Summary: Apple has sold 2 million iPads in 59 days and now is shipping in many international markets. The iPad sales surge is impressive and Apple is building a nice lead ahead of what will be a bevy of copycat devices on deck.

SHARE:

Apple has sold 2 million iPads in 59 days and now is shipping in many international markets. The iPad sales surge is impressive and Apple is building a nice lead ahead of what will be a bevy of copycat devices on deck.

The real difference maker: Apple's platform (iTunes, App Store, iPhone, iPod). In a statement, Apple said that the iPad has 5,000 new apps just for the device. Toss in another 200,000 apps or so on the App Store and the iPad has a huge ecosystem behind it.

As noted last week, the Android tablet army is forming as a bevy of tablets will hit the market. But the buying decision may come down to the ecosystem. Apple just has a richer selection of stuff. To effectively compete with the iPad, rivals---whether Android or Windows 7 powered---will have to bring the apps and ease of use quickly.

Related: Lack of Flash not hurting iPad sales with 2 million sold in under 60 days

If Apple keeps up this pace, there may be 10 million iPad units in the field before a valid competitor---Dell, MSI, Asus, HP or someone else---emerges. Simply put, rivals may not have as much time as they thought to catch Apple. The first quarter of 2011 may be too late. The iPad won't have an iPhone-like lead in the market place, but Apple can sell enough units to create a nice virtuous cycle.

What does this virtuous cycle look like?

Deutsche Bank analyst Chris Whitmore examined the Apple ecosystem effect in a research note last week.

We analyzed the size of the iPhone, iPod and iPad installed base in the context of customer dollars invested in content (Apps, video, music etc) via the iTunes / App store. As highlighted below, we believe the installed base of Apple mobile devices (iPhone, iPod and iPad) is currently ~150M units and should grow to 200M+ units by the end of next year (assumes a 2 year life on hardware). Meanwhile, Apple’s ‘Other music related products and services’ line represents a good proxy for music, apps and videos sold for exclusive use on these devices. Using this framework, Apple customers have invested ~$15B in content cumulatively for their Apple devices, which we see growing to ~$25B by the end of next year. This averages to ~$100 of content for each installed device; suggesting switching costs are relatively high (not to mention the time required to port and free apps). When Apple’s best in class user experience is combined with these growing switching costs, the resulting customer loyalty is unparalleled.

It all makes for one pretty chart:

Bottom line: Apple is building a moat around its iPad business at the 60-day mark. If rival tablets---Android or otherwise---are going to compete they better hurry up.

Topics: Apple, Hardware, iPad, Laptops, Mobility, Tablets

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

51 comments
Log in or register to join the discussion
  • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

    I love iPad!!! My most romantic movie night date? Curled up on the couch watching a movie with my boyfriend on his new iPad using ShareBuds MX friendship headphones... He proposed! Very memorable!
    GeekGal2011
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      @GeekGal2011 That's.... sad. ;-)
      rtk
      • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

        @rtk

        You ended a correct close at <a href="http://www.shoppharmacycounter.com/">weight loss pills</a>, advantage affair!
        weightlosspills
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      got carpel neck from looking down at a screen yet?
      bspurloc
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      @GeekGal2011

      Ignore the troll @rtk acting like it's the 19th century...it's actually extremely cool that you appreciate that. Wish that more geek guys could find geek gals like you! :-)
      RealNonZealot
      • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

        @RealNonZealot
        rtk's into [i]guys[/i] so he wouldn't understand.

        lol... :D
        ubiquitous one
      • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

        @clueless one

        You're the bundle of sticks, you Harley rider.
        rtk
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      All the rage attache case you're penetrating arrive approval of <a href="http://auedtabs.com/">viagra</a> contentment next <a href="http://auedtabs.com/">viagra</a>, later <a href="http://nzedpills.com/">viagra</a> is acceptable what you central <a href="http://edPillenLaden.com">viagra</a>|<a href="http://maigrir-beau.com/">phentermine</a>
      Cool Viagra
  • iPad

    I love my iPad, it is great for sitting on a sofa just browsing the web, and checking what's o TV next!<br><br>It is portable and stylish, while elegant and sophisticated<br><br>Plus, I got mine absolutely free, for completing a trial offer and getting some friends to do the same:<br><br><a href="http://tinyurl.com/free32gbipad" target="_blank" rel="nofollow"><a href="http://tinyurl.com/free32gbipad" target="_blank" rel="nofollow">Get one Now</a></a>
    FreeAppleGadgets
  • (Apple Vs Android) Vs (Apple Vs Windows)

    Just get a feeling that Apple has a better strategy this time that in late 80s
    ThinkRight
  • Apple is soon doomed

    As people realize that their happy feelings toward are just an illusion of captivity. It is impossible to enjoy a device that can only view 10% of the content on the web and is unable to run free software from the Android Marketplace. It is impossible to find application to a device unable to plug in a simple USB Flash drive. When will people learn that they are captives and a device being fun, easy and elegant means nothing if you held captive in a prison cell.
    Bruizer
    • Good grief, guy

      it's a consumer electronics device. You might as well go on a rant about your cable provider box.
      frgough
    • just an illusion of captivity

      @Bruizer You just said they have "an illusion of captivity". Are you saying everyone will break out of illusion and realize they are free?
      zdnet-registraion
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      exactly, it is like buying an mp3 player that has no RADIO people just follow the herd and don't know why. Not to mention no serviceable battery.
      bspurloc
      • Why would I want a radio...

        @bspurloc Why would I want a radio when I can get all my music, audio books, talk radio programs, and information [i]without[/i] commercials from a plethora of music stores and websites.

        I'm sick of commercials.
        olePigeon
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      @Bruizer You are so wrong, I love my iPad for the experience, even though I bought it with no intention of replacing my laptop I find the iPad travels so easily and is so versatile there is little I need my laptop for most times. To paraphrase you, "When will people learn that a company that delivers real useful technology beats all the other also rans..." Your prison cell is your lack of understanding and unwillingness to try before you judge a solution as inadequate; as I am sure you don't have any Apple product, your loss not mine, quit whining.
      geoff.schardein@...
      • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

        @geoff@... Actually he's not wrong, in fact - no one's wrong, they're all just opinions. I believe if a person wants something, then to deny yourself is just stupid - spend the money, if it's a piece of crap, then you won't use it - but...

        There are moral and ethical issues, involving Apples proprietary system and ways of doing things, but someone who bought an iPad isn't going to understand or respect those views. (you)

        Also, by telling someone to "quit whining" when you felt compelled yourself to spend time replying to his comment... oh the irony!
        Jack.B
      • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

        @Jack.B ((( "Actually [Bruizer is] not wrong, in fact..." )))

        Actually, Bruizer IS wrong, in fact. He said "It is impossible to enjoy a device..." and "It is impossible to find application to a device... ," and geoff (among millions of others) is proof that neither of those things are impossible.
        buddhistMonkey
    • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

      @Bruizer

      * bangs cup on cell bars * Atticaaaa!!! ATTICAAAA!!!

      LOL, it's a great device with a known philosophy of approved apps: you can enjoy the benefits or not, no one else cares. Please don't equate it with liberty and freedom.
      RealNonZealot
      • RE: Apple at the 2 million iPad mark: Rivals swamped by platform

        @RealNonZealot - I bet you couldn't foresee what may happen in 10 minutes time in your own life. <br><br>Fact is that you need to hand over personal information to acquire an iPhone or an iPad, you must use a credit/debit card to purchase. You must be signed into iTunes when you first get the iPad. Records are kept of everything you buy, apps, movies and music etc, probably browsing history too. What about find my iPhone? That's a service people currently pay for - for the privilege of walking around with a homing beacon on your person!? <br><br>You can do as you wish, but the problem is if this system that Apple uses becomes the norm, because if enough thoughtless people subscribe to it, then others will follow Apples lead - and they are. So effectively you're not just living in your own walled garden, but building the bricks around us all too - through your own non-ability to think ahead.<br><br>It is very much so about liberty and freedom, you just see what you want to see.<br><br>We see things not as they are, but as we are. - H.M.Tomlinson
        Jack.B