“Multiplying 2 million by $664 (the average of those pricing extremes) tells us that Apple has already booked at least $1.3 billion in iPad revenue,” Beyers writes. “That’s a good number, but we know from Apple’s second-quarter conference call that the iPad is partially responsible for a coming decline in gross margin.”
Beyers writes, “We also know that there’s bound to be plenty of competition. Now that Apple is making its own chip for mobile devices, Intel is making a play to get its newest Atom chip adopted by netbook makers.”
MacDailyNews Take: Intel has not yet proven they can even make, let alone compete with, a high performance mobile SoC that doesn’t eat batteries by breakfast.
Beyers writes, “Dell, meanwhile, has teamed with Google for the new Streak tablet and Hewlett-Packard acquired Palm in part to use webOS as the basis for a new line of tablet PCs.”
MacDailyNews Take: HP is printer ink cartridge peddler that’s years behind with a derivative vapor-dream. They haven’t “invented” anything of note in decades. And Dell? Thanks for the chuckle, Tim.
Beyers writes, “See the problem here? Apple has to move a lot of iPads to produce iPhone-sized profits, yet forthcoming competition could stunt sales.”
MacDailyNews Take: Not seeing the problem, Tim. Is this fantasy of yours anything like those “iPod killers” we once heard so much about?
Beyers writes, “Fortunately, the Mac maker already has experience winning in a crowded market. Consider the iPhone. Though still a relative newcomer among smartphones, it’s challenging Research In Motion for the market lead here in North America.”
MacDailyNews Take: And Apple’s doing it with the AT&T millstone around it’s neck, too. Wait until they add multiple carriers in the U.S. (In countries where Apple has multiple carriers, RIM, Android, etc. are getting killed by iPhone; and that’s pre-iPhone 4, no less.
Beyers writes, “Remember also that the iPad’s chief rival, Amazon’s (Nasdaq: AMZN) Kindle, is becoming increasingly known as a store rather than a device.”
MacDailyNews Take: TIm, go use an iPad. Its chief rival is certainly not Amazon’s Kindle.
Beyers writes, “How big is Apple’s iPad opportunity? Judging from its current momentum, competitive position, and industry support, it’s massive. But I could be wrong.”
Full article here.
MacDailyNews Take: On that last point, Tim, you’re not wrong. Apple’s iPad opportunity is massive and hopelessly overmatched, years-late wannabe fake-makers aren’t going to compete any better than they did with iPod and iPhone.