# The SBHonline Community Daily > Digerati Discussions! >  >  'Amazing' demand for iPad 2 seen as 'insurmountable lead&#03

## JEK

'Amazing' demand for iPad 2 seen as 'insurmountable lead' for Apple

By Neil Hughes
Published: 01:10 PM EST

Apple on Monday commented that demand for the iPad 2 at launch was "amazing," though the company declined to reveal actual sales figures. But with the device sold out virtually everywhere, one Wall Street analyst declared that Apple now has an "insurmountable lead" in the tablet market.

Apple: 'Amazing' demand for iPad 2

"Demand for the next generation iPad 2 has been amazing," Apple spokeswoman Trudy Muller told The Loop. "We are working hard to get iPad 2 into the hands of every customer who wants one as quickly as possible."

Though Apple has not revealed initial sales for the iPad 2, most locations were completely sold out by Saturday. Sales predictions have ranged from about 500,000 to as high as one million, a number that will be determined by how many units Apple was able to supply for last Friday's launch.

Deutsche Bank: Apple's lead 'insurmountable'

Analyst Chris Whitmore with Deutsche Bank said in a note to investors on Monday that he sees the blockbuster start for the iPad 2 as evidence that Apple has earned an "insurmountable lead" in the tablet market, leaving competitors in the dust.

"We believe the combination of its robust ecosystem, massive App catalog, broad carrier support, industry-leading hardware performance and its price-performance advantage creates an unmatched value for consumers in this segment," he wrote.

Whitmore conducted a survey of 100 stores, including 50 Apple retail locations, 20 Best Buy and Walmart stores, and a handful of AT&T and Verizon stores. He found a complete 100 percent stock-out of the iPad 2 at all locations polled.

The analyst said the strong start for the iPad 2 suggests his estimate of 30 million iPad sales in 2011 is "very conservative." Apple sold about 15 million of the first-generation iPad in all of 2010.


  ] 

J.P. Morgan: iPad 'wannabes' must 'rethink' their tablet plans

Analyst Mark Moskowitz with J.P. Morgan also sent out a note to investors Monday in reaction to the iPad 2 launch. He believes the early success of the iPad 2 is a sign of a "global tablet bubble."

"There are many competitive tablet entrants expected, but so far, we think that both Samsung and Motorola have experienced disappointing adoption curves," he said. "We expect more of the same from other entrants.

"Meanwhile, Apple's iPad 2 technical and form factor improvements, coupled with opening weekend stock-outs, point to a widening gap in market share ownership potential."

Moskowitz expects Apple to control at least 61 percent of unit sales in the tablet market in 2011. He noted that number could go higher, given the momentum the iPad 2 saw in its debut over the weekend.

Ticonderoga Securities: 'Consumers have spoken' in favor of iPad 2

Finally, Brian White with Ticonderoga Securities issued a response to the iPad 2 launch, declaring that tablet competitors to the iPad 2 have even more of an uphill battle after Apple's tablet launched last week.

"For tablet competitors," he wrote, "we believe consumers have spoken, and life just got a lot tougher if you plan to compete with the iPad 2."

White and his team conducted field checks with stores over the weekend, and also found that every store, including Apple retail locations, were completely out of iPad 2 stock. He said the iPad 2 launch was much stronger than most likely expected, and he reiterated his prediction that first-weekend sales could reach 1 million.

"Clearly, we believe the demand was there to exceed our target," he said. "However, the question now becomes was there adequate supply."

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## BBT

Glad to see you are "back on the job"

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## BBT

Just called ATT they did not get any new ones today. Fortunatly I am in chicago LAX Atlanta and NY over the next 9 days and hopefully can find one.

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## JEK

Using Firewire to transfer all my apps, data and setting from my old MBP 15 " to my just arrived MBP 13".

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## amyb

Pulling for you BB..........

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## JEK

My engraved iPad still hasn't shipped.

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## BBT

Did the same last week. Too bad no Thunderbolt wire.

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## BBT

I dont engrave since I may want to resell. Cover is on its way will be here tomorrow.

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## MIke R

my cover too arrives tomorrow......iPad not so...LOL

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## JEK

My cover is on the way too. iPad by the 18th.

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## Petri

Are you trying to say that iPad 2 has been available since last friday and no one on the forum has one yet?!  LOL!

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## MIke R

no but the smart covers are very available.....LOL

hey I dont care...when it  comes??..it comes

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## JEK

My neighbor stood line, rather had an intern stand in line, and got one, but I went with the engraved order.

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## BBT

I figure I can stick some mag tape on mine and carry it around with my new cover.  Mine should arrive tomorrow. My leather cover has not shipped just my orange.

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## KevinS

All I've got showing up tomorrow is the camera connection kit.  :Frown: 

Anyone have any thoughts on software for ripping a DVD to iPad movie format on a Windows PC?

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## Petri

> no but the smart covers are very available.....LOL



With a laser cut metal plate and Apple stickers it works like the real thing!

My iPad 1 auction finishes today.

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## JEK

> All I've got showing up tomorrow is the camera connection kit. 
> 
> Anyone have any thoughts on software for ripping a DVD to iPad movie format on a Windows PC?



This is what I use - http://handbrake.fr/

Mac, Linux and Windoze

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## MIke R

[quote=Petri!

My iPad 1 auction finishes today.
[/quote]


how did you do?

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## BBT

All Apple stores open 1 hour early today. Clearly they have restocked. I am hopping to snag on tomorrow in Chicago.

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## amyb

Good luck to you, BB. (I know how important this is for you).

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## KevinS

> All Apple stores open 1 hour early today. Clearly they have restocked. I am hopping to snag on tomorrow in Chicago.



No joy at my local Apple store, but they suggested that 9AM tomorrow might be a good time to return...

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## Petri

Apple should put the iPad 2 available everywhere at the same time.  Now the US stock is being bought by random visitors and especially people from Asia, Middle East and Russia who buy every possible unit and carry them to their home countries.  Plenty of people who are prepared to pay premium but the premium doesn't go to Apple but the middlemen.

http://www.tuaw.com/2011/03/15/how-t...-market-works/
http://www.electronista.com/articles....to.exporters/


Even I got 1330 USD (950 ) for my iPhone 4 when I sold it due the antenna problem..  When I was in Hong Kong last July, the availability of iPhone 4 was amazing due the gray market (about 25% mark-up).

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## Petri

> how did you do?



Got 469e (655$) plus shipping for it (iPad 3G 64G).  The demand wasn't quite there, usually the auctions are a positive surprise but this was quite the expected result.  I set the price reserve at 450e and started at 350e.

Apple sells these new for 699e (one retailer has them for 649e) and I believe the iPad 2 will be priced at 799e.

I will probably try to get the iPad 2 from the US, friends travel there frequently and I've thought about a summer trip as well.  (sending one won't work due the VAT I'd have to pay..)

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## MIke R

I was very surprised..... I got 75% of  what I paid for mine...and she paid the 45 dollar shipping to the UK

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## Petri

> I was very surprised..... I got 75% of  what I paid for mine...and she paid the 45 dollar shipping to the UK



Luckily mine was an iJEK device instead of Euro-iPad so I'll be slightly below 70%.

Looking at the activity on the market here, people don't seem to pay much premium for the higher capacity and there are quite a few 64G 3G models for sale -- I guess the folks who are the most eager to get an iPad 2 got the best iPad 1 model.  People with other models aren't that much in a rush to upgrade.

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## BBT

> Originally Posted by BBT
> 
> All Apple stores open 1 hour early today. Clearly they have restocked. I am hopping to snag on tomorrow in Chicago.
> 
> 
> 
> No joy at my local Apple store, but they suggested that 9AM tomorrow might be a good time to return...



Well I will be at the Chicago downtown store at 8 am if that doesn't work Saturday at LAX.

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## BBT

Chicago, yes we have no bananas err I mean apple ipad2's. On to LA tomorrow the quest continues. Meanwhile my cover seems to hung up in Hong Kong.

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## JEK

I tried two stores yesterday -- no dice. My cover is hung too and the iPad has not shipped yet. Delivery 18-25 is looking like 25. I NEED it for a trip to Dallas on the 24th :)

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## MIke R

as long as I have mine by the time I leave for St Barts...I'm fine

and even if not I will just take my iTouch for the music

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## andynap

You would be taking that in place of a laptop- thought you didn't do that?   :p

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## MIke R

nice try ....but we are taking that in place of  the iTouch for music and games and movies in the event of a rain out day....

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## JEK

MIne just changed to "Prepared For Shipment"! Oh joy of joys -- incoming Apple product :)

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## andynap

Sure. LOL

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## MIke R

ask Wendi....

with all due respect and as much as I love you all ( well almost all )... about the *last* thing I want to do is take you all on vacation with me....LOL

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## BBT

Connectivity I can't believe it. Is there a chink in the armor.

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## BBT

JEK what time does your order show? I am curios as mine does not show prepped. I am wondering if it's time based. The time is in upper left hand corner

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## JEK

Mar 11, 2011 at 02:07 AM PDT. I overslept :)

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## BBT

Thanks I thought it was just slow Internet service.

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## JEK

My Visa was hit today too.

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## BBT

Clearly not time based. Must be your special website.

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## JEK

Still "Prepared for Shipment" I going to hit the store to see if I can find one for my son's 30th birthday on Monday. I don't know if he wants one, but he needs one :)

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## BBT

Well if he doesn't tell him you would bregrudgingly accept an early Christmas regift. My orange cover left Alaska and is now in transit. iPad is prepared for shipment.

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## Petri

If the international launch next week goes as planned, I'm really surprised..


http://www.tuaw.com/2011/03/17/ipad-...s-finest-hour/

iPad 2 launch: not Apple's finest hour
by David Winograd (RSS feed) on Mar 17th 2011 at 9:30PM



Jason O'Grady, writing for ZDNet's The Apple Core, penned an incisive piece on the five ways that Apple screwed up the iPad 2 launch. I agree with every point. Usually Apple has been very good on getting information to the huddled masses waiting for the next new iThingy, but this time the company side-stepped the issue and let everyone fend for themselves, to the liking of no one. Here's what Apple got wrong:

Not allowing Pre-Orders: Allowing potential customers to pre-order new products helps assure they can get the new stuff in their hands on day one. This time, not so much. There are plenty of reasons pre-orders might have been infeasible, including lack of inventory or a bad component delaying shipments. Still, in a perfect world Apple should have taken the high road and allowed pre-orders, even if the number of units allocated was slim.

No Availability Tracker: Apple has been good about providing information on in-store availability of new products. In the past, the company has put up a page (it no longer exists), providing a grid of what stores had particular models. This prevented the stress of going to your store and coming up empty. If you were in a populated area, with a few Apple stores, you were given alternatives. This time, no such information was provided.

Lines, lines and more lines: Without any information, lines were bound to happen with Apple knowing full well that many, if not most people on the line would walk away disgruntled. This could have been prevented by handing out wristbands ahead of time. There was absolutely no reason to have people standing in line for hours, or in some cases, days, with Apple fully knowing that there would be no Joy in Mudville. After not getting an iPad 2, people scurried from store to store -- most often coming up empty time and time again, in part due to the efforts of the next group...

Nasty Gray Marketers: The New York Post reported that a good deal of the iPad 2 inventory was snapped up by a group of gray marketers who bought all they could and scalped them for outrageous prices, selling some for as much as $2,000 each. A lot of inventory went back to China where the iPad 2 is not on sale for potentially ridiculous prices as well. eBay is rife with iPad 2's with current bids going as high as $6400.[Note: This is for a lot of 12 units.) Apple could easily have done something about this by limiting purchasing to one or two units, instead of the supermarket sweep that seems to have occurred. [Of course, for past product launches Apple has been dinged for limiting purchase quantities, profiling buyers and banning cash sales. Ed.]

Not Keeping Promises: Jason reported that he ordered an iPad2 online. He found the ordering page one minute before it was supposed to go up, and was promised three to five-day shipping. It's now the fifth day and it still hasn't shipped. I'm sure that his problem will be worse than what happened to me. I ordered a MacBook Pro online on the 12th with a promise of one to three-day shipping. It finally shipped on the fourth day. This is not the biggest of deals, but Apple usually under-promises and over-delivers. in the past I got used to Apple shipping the next day after being given a three day window. Not this time.

It wouldn't take a brain surgeon to solve all of these problems. All Apple needs to do is to be straight with its customers and give them some useful information, as has so often been the case in the past. The larger problem is that Apple booting this roll-out so dramatically, and having it so vociferously covered in the press, is going to shrink an awful lot of good will that Apple has traded so heavily in over the years.

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## JEK

All shipment travel activity is displayed in local time for the location
Date/Time Activity Location DetailsMar 18, 2011 11:50 PM
At local FedEx facility
LANTAU ISLAND HKMar 18, 2011 11:39 AM
In transitLANTAU ISLAND HKMar 17, 2011 11:20 PM
Picked upSHENZHEN CN
Package received after FedEx cutoffMar 17, 2011 11:13 P
MLeft FedEx origin facilitySHENZHEN CNMar 17, 2011 6:10 AM
Shipment information sent to FedEx

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