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Innovation

Apple kicks off iPad ad blitz at Oscars; Cash cow in the making?

Apple introduced its iPad to the non-tech world Sunday night two ad spots during the Oscar broadcast. The commercial signals Apple's presale hype of its iPad launch on April 3. What's at stake? A lot of money.
Written by Larry Dignan, Contributor on

Apple introduced its iPad to the non-tech world Sunday night two ad spots during the Oscar broadcast. The commercial signals Apple's presale hype of its iPad launch on April 3.

It's a bit hard to believe, but for non-tech folks Apple's iPad commercial at the Oscars was probably the first real introduction to the device to the average bear. The commercial, which garnered a lot of tech buzz, was more overview than killer app play, but Apple is clearly introducing the iPad to the masses. Early adopters are nice, but getting your mom to buy an iPad pays the bills.

Also: Apple iPad coming April 3: Will anyone wait for Wi-Fi and 3G version?

iPad makes its television commercial debut during Oscars broadcast

What's at stake? A lot of money.

Deutsche Bank analyst Chris Whitmore assumes that Apple will get a blended average selling price of about $600 for the iPad with gross margins in the 25 percent to 35 percent range. Meanwhile, 1 million iPad units equates to about 10 cents a share in additional earnings.

Here's Whitmore's money chart. As you can see, iPad has a lot of cash cow potential.

And here's how Barclays Capital analyst Ben Reitzes sees iPad demand developing.

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