Apple iPad 2 sales: New customers buying; Analysts see big launch

Apple iPad 2 sales: New customers buying; Analysts see big launch

Summary: The launch of Apple's iPad 2 is being billed as one of the largest ever and analysts are noting that the majority of buyers didn't own the tablet previously.

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The launch of Apple's iPad 2 is being billed as one of the largest ever and analysts are noting that the majority of buyers didn't own the tablet previously.

Now that the lines outside Apple stores are clear and gadget lovers are telling their tales, analysts are starting to handicap sales.

Also: All Apple iPad stories, launch day scenes, and must have iPad 2 apps.

In a research note, Piper Jaffray analyst Gene Munster made the following points based on a survey of 236 people in line at Apple stores in New York and Minneapolis:

  • 70 percent of iPad 2 buyers were new to the iPad.
  • Apple is likely to have sold 400,000 to 500,000 iPad 2 units over the weekend.
  • That weekend tally likely accounts for the launch day since inventory is already thin.

Global Equities Research analyst Trip Chowdhry said in a research note that the iPad 2 was likely to be Apple's largest ever. Chowdhry found that 60 percent of iPad 2 buyers were existing iPad owners. All iPad 2 buyers owned at least one other Apple product. Chowdhry also added this nugget: AT&T's iPad 2 seemed to be preferred over Verizon.

Munster wrote:

Given extended lead times at the online store and sold out retail stores, we believe iPad 2 sales exceeded Apple's initial expectations. We continue to believe that Apple sold between 400k and 500k iPad 2s over the weekend (vs. 300k original iPads over launch weekend). And we note that the weekend number for iPad 2 is essentially a launch day total because stock was so quickly depleted and not replenished over the weekend. iPads are sold out across virtually all channels. In calling various retailers over the weekend that carry iPad 2 (Apple stores, Target, Best Buy, etc.) we were unable to find any availability.

Checks from our blog network noted that you could find a few iPad 2 units at various retailers. However, those units weren't found in tech centers.

Some key data points from Munster's survey:

  • 30 percent of iPad 2 buyers were buying the 64GB version and 41 percent were going for the 32GB variety. Those percentages were both up from the first iPad launch where 39 percent of buyers went for the 16GB version.
  • 53 percent of iPad 2 buyers were going with the Wi-Fi only version.
  • 70 percent didn't have the first iPad.
  • 97 percent said the PC or Mac will be used with the iPad.

Now what? Chowdhry indicated that Best Buy stores expect more shipments next week.

Here's a look at a portion of Munster's survey:

Topics: iPad, Apple, Enterprise Software, Mobility

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  • After Jason Perlow's article, this bit of news seems somewhat anticlimatic

    But Tech Life does go on.

    Your report, Larry, does put to rest the theory that the majority of iPad 2 "early adopters" would be prior iPad owners. Your report puts to rest .. but good .. that theory!

    I suspect that most persons, once having had some exposure to this new product, will not wait for iPad 3. This product might be all they need.
    kenosha77a
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      @kenosha7777 "Chowdhry found that 60 percent of iPad 2 buyers [b]were existing iPad owners[/b]. "

      Different analysts have different reports at this point, so nothing conclusive yet.
      nomorebs
      • I agree way to early yet....

        @nomorebs
        Still even if that were true and 40% were new to the iPad and 60% were returning or upgrading to the iPad 2 from the original iPad how is that bad? 40% new is a fairly big number and as Apple has long been shown to have a very satisfied customer base 60% this early in the game coming back can't be a bad thing either:)

        Pagan jim
        James Quinn
      • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

        @James Quinn : who said it is bad? Did you bother to read the post by kenosha7777 and what he said, or did you just, as usual, jumped to "defend" the company of which you are a stockholder?

        Perlow said "the majority"**, and 60% is the majority according to ONE survey. That's why I said that there is nothing conclusive yet. Do you understand now?

        ** I won't blame you if you don't want to trust Perlow, though.
        nomorebs
      • Yes I am an Apple fan and a stock holder:)

        @nomorebs
        Still I do not recall you saying it was bad? All I wondered was if there was a down side to either report? I guess in your own way you confirmed there is not which does make me happy as a fan and stock holder....

        Pagan jim
        James Quinn
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      @kenosha7777

      "All iPad 2 buyers owned at least one other Apple product. "

      Yes, it does put the theory to rest. It is now called a fact.
      Your Non Advocate
      • Yes it is a fact that "satisfied" customers

        @facebook@...
        often do repeat and or NEW business with the company that provided said satisfaction. So if an iPod user is satisfied with the product they just may choose to purchase a Macintosh or iPhone who knows maybe an iPad. It's all good:)

        Pagan jim
        James Quinn
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      @kenosha7777 If you aggregate the results of both surveys: 70% and 40%, you get 110%. Divide that by 2 and you get 55%. So the the majority of those polled by both surveys are still new to the iPad.

      Having said that, the results differing so wildly would suggest two things: Firstly, the survey numbers must have been quite small. Secondly, launch day buyers are not necessarily representative of the average buyer.
      Graham Ellison
      • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

        @Graham Ellison Correct and correct.

        The people who said they were new to the iPad are not new Apple customers because they all have at least one iDevice already. I don't consider those buyers as new or indicating somehow that Apple is expanding their customer base.
        mrxxxman
      • However while not new to idevicres

        @mrxxxman
        they are still new to iPads which means they are expanding the iPad user base.

        Pagan jim
        James Quinn
      • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

        @mrxxxman<br>Problem with drawing any conclusions from these surveys is that they only cover early adopters and/or diehard Apple fans (i.e., the people willing to endure long lines for hours on end to get the iPad 2 before most others do). The first weekend for the original iPad attracted 300,000 buyers -- about 2% of the 15 million iPads that Apple would sell in 2010. As you get further away from the launch weekend, I think it's safe to assume that there would be at least some consumers new to Apple.<br><br>Also consider that Apple has already sold 100 million iOS devices and close to 300 million iPods (some overlap with the iPod touch). A very high percentage of the CE consumers already own at least one Apple product. But, you're still expanding the customer base because the iPad represents a different market segment.
        Woochifer
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      @kenosha7777 He interviewed people in line? Please, this is only anecdotal info. This is not scientific by any means. I'm sure a large number said they didn't have the previous iPad because they didn't want to be pegged as a irrational loon for getting a another iPad considering their current one wasn't even a year old.

      However, the telling piece of info is that ALL of them were already owners of iDevices. That alone makes them biased towards buying an iPad much more so than had they had an iPad before or not. This is the group of iFans that were a little smarter and waited until version two came out.
      mrxxxman
      • Yes &quot;telling&quot; because strange as it sounds

        @mrxxxman
        to some satisfied customers are actually a HUGE benefit to a company cause well they do tend to come back and try new products as a direct result of that satisfaction.

        Pagan jim
        James Quinn
      • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

        @mrxxxman You have made the claim twice that all iPad 2 buyers already owned an iDevice but that is not what the survey said. It said that they all owned at least one Apple product. While more than likely they owned an iDevice we don't know that. Regardless, Apple is simply adding on to their ever growing number of satisfied customers that are willing to buy more products from them.
        non-biased
      • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

        @mrxxxman "I'm sure a large number said they didn't have the previous iPad because they didn't want to be pegged as a irrational loon for getting a another iPad considering their current one wasn't even a year old."

        And this is not a scientific conclusion that you've forwarded either, and not even at an anecdotal level because it's just a made-up assumption.

        As I pointed out above, Apple has already sold 300 million iPods. A very large percentage of mainstream consumers already own iPods, and presumably an even larger percentage of gadget freaks would own them as well.

        As for the logic of your claims of bias. Think of the 90+% of computer users that use Microsoft Windows. You think that fact makes them biased towards buying a Windows tablet? Y'know, the ones that have been on the market for close to a decade?
        Woochifer
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      @kenosha7777

      The last question in the survey should have been "Do you have an iPod or iPhone?", since iPhone users no longer need a iPod to listen to their music.
      Masari.Jones
      • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

        @Masari.Jones YMMV. I have an iPhone but still actively use two iPods. One serves the living room stereo, and I carry the other back and forth to work. I keep my phone in my pocket all the time; its use as an iPod is almost zero. However I do run apps on it all day long.
        vulcan666
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      @kenosha7777 pretty :)
      www.awwgame.com
      lariosshow
    • RE: Apple iPad 2 sales: New customers buying; Analysts see big launch

      Ipad 2 feverrr!

      Excited to own one.


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  • Amazing survey!

    Wow 236 people somehow equate to some larger metric for all tablet purchases?!? All this proves is a snapshot of said 236 people.

    Considering the lack of iPads available it reeks of a rushed launch to offset coming competition. They had 500k (maybe) to scatter across the states (with a good % sold to grey market exporters who staffed lines with paid line purchases) alll for headlines like this and the perception Apple has a runaway hit.

    Apple should get into goverment as they sell it like no one. Of course we will not see any official numbers.
    MobileAdmin