Morgan Stanley sees Apple’s revolutionary iPad reshaping PC market, ups Apple target price

invisibleSHIELD case for iPad“As if Steve Jobs wasn’t getting enough attention after his iPhone 4 keynote Monday, Morgan Stanley’s Katy Huberty issued a note to clients Monday night that’s basically a love song to [her] iPad,” Philip Elmer-DeWitt reports for Fortune.

“By the time she’s done, she’s raised her iPad sales estimates [to] 10 million units in calendar 2010 (from 6 million) and her Apple price target to $332 from $310,” Elmer-DeWitt reports. “In her ‘bull case’ scenario, the stock could climb as high as $440 by May 2011.”

Elmer-DeWitt reports, “What’s turned her head? The blistering sales of the iPad and the diminishing growth of netbook sales. Among her findings: The iPad is on track to become if not the fastest, then the second-fastest ramping mobile Internet device out of the gate after the netbook. Early iPad usage patterns validate the tablet as a computing device. It’s already overtaken the Web browsing share of devices like the iPod touch. [iPad is] at least partially responsible for a sharp drop in the growth of netbook sales, which decelerated to -13% year-over-year in the month of April, from +45% in the first quarter of 2010. Huberty thinks the netbook phenomenon may have peaked; she expects tablet sales to overtake netbooks by 2012.”

Full article, with charts, here.


  1. Keep in mind that the sales of netbooks last year was the only real growth for the PC box makers. Poof! It is gone and Apple owns that market share group now!

  2. @jaundiced

    I say who the hell cares if netbooks are dead or alive. The travesty in all this iPad mania is that Steve insists that the damn gadget is a replacement for real computers.

    This is not the mobile device era – it will forever be known as the era when technology took a giant step backward. (Although I think the new phone is cool but, like all phones and tablets, soon to be eclipsed by some other company’s phone.)

    We are now looking for the next Steve Jobs. The old one is done.

  3. @ Truck Driver,

    Steve said the transition away from traditional PCs would be painful for some people, but there will always be trucks.. So don’t worry, you’ll always have a truck (PC) to drive.

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