This morning, Piper Jaffray analyst Gene Munster called the iPad the first “Mac for the masses” and predicted that it would sell 21 million units in 2011. His previous estimate was 14.5 million. Also revised was his price target for the stock, now $390 up from $371.
Munster said that because of its lower price and relative affordability, the iPad is essentially a Mac for everyone who couldn’t afford one in the past. However, it may be unfair to compare the iPad and other iOS devices with the Mac, since the tablet is a completely new category of device.
Nevertheless, if Apple can sell 21 million iPads worldwide next year, it can only be good for the company and for investors. How is Apple going to sell so many units? Munster cited three reasons for the increased sales projections:
- Improvements in Supply and Distribution – Apple has been able to ramp up production and make the units faster, and is also expanding its distribution channel. It will be available in Best Buy and likely Target stores by year’s end, and “ultimately we expect the total iPad points of purchase to exceed that of the Mac by 2011.”
- International sales and Price Sensitive Markets – As Apple begins to launch worldwide, it begins to sell to markets which are more sensitive to price. At its lower price point compared to traditional computers and Macs, Munster predicts that it could well be the sole computing device people purchase, rather than the secondary device for most individuals in North America and Europe.
- Enterprise – Business is the big factor here in Munster’s projections. “Of any product Apple sells we believe the iPad has the potential to garner the largest percentage of its sales from enterprise customers. Apple has recently highlighted several business use cases on its site (sales, medical, hospitality, etc.) and on the June-10 conference call the company indicated that over 50% of the Fortune 500 were deploying or piloting the iPad.”
Article via BusinessInsider