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Edition: U.S. Article Comments (0) Slideshow Save Email Print Reprints Most Popular Most Shared Apple's iPad debuts strongly, but key tests remain 3:16pm EDT Microsoft to announce "Pink" phone next week 4:37pm EDT Already strained, AT&T soon to cope with iPad 3:59pm EDT Apple to preview new iPhone software 1:11pm EDT IMAX puts 3D spin on science films with "Hubble 3D" 03 Apr 2010 Apple's iPad debuts strongly, but key tests remain 3:16pm EDT Microsoft to announce "Pink" phone next week 4:37pm EDT Already strained, AT&T soon to cope with iPad 3:59pm EDT Apple to preview new iPhone software 1:11pm EDT IMAX puts 3D spin on science films with "Hubble 3D" 03 Apr 2010 Apple's iPad debuts strongly, but key tests remain Gabriel Madway SAN FRANCISCO Mon Apr 5, 2010 3:16pm EDT Related News Apple says over 300,000 iPads sold on first day 9:06am EDT < 1 / 9 > View Full Size SAN FRANCISCO (Reuters) - Apple Inc said it sold more than 300,000 iPads on the tablet computer's first day in stores, a strong showing that roughly matched Wall Street forecasts and mirrored the iPhone's debut in 2007. Technology | Media Despite a solid opening weekend, which prompted several investment banks to raise their earnings and revenue forecasts, the bigger test will come later this year, as consumers outside the company's core fan base size up the iPad. Questions remain about whether consumers will shell out $500 or more for a device that fits between a smartphone and a laptop, and which Apple hopes pioneers a new class of device. It hopes the sleek iPad joins the iPod and the iPhone in its stable of successful consumer products, providing the next driver of growth as sales of its multimedia player and smartphone begin to moderate. Should it take off, the iPad would not only provide a new market for component makers, but another platform for which software developers and content companies would hawk their wares. Time will tell whether Apple has another bona fide hit on its hands, but media companies like New York Times Co and News Corp are betting the iPad will erect a profitable bridge from print to digital content. "The launch went pretty much as expected; it was well received," said Shannon Cross of Cross Research. "There is widespread enthusiasm for the product, but it's a new category, and it will take time for people to understand it." Apple has staked its formidable reputation on a 9.7-inch touchscreen tablet with no clear-cut case for use other than pure media consumption. Rivals including Hewlett-Packard Co and Dell Inc are preparing tablets of their own later this year, so consumers will have a range of choices, particularly in the crucial holiday period. "From a bigger strategic picture, the iPad is a content gatherer for Apple; that's what separates it from the others," said Broadpoint Amtech analyst Brian Marshall. "This has been a successful strategy for Apple in the past with iTunes," the company's online music store. MARKET HOOPLA Many analysts believe the company likely sold 350,000 to 400,000 iPads for the weekend. A number of Apple stores in the United States were closed for the Easter holiday on Sunday. At least four brokerages full-year earnings estimates and price targets for Apple following the iPad launch. Following the launch, JPMorgan raised its price target on Apple stock to $305 from $240; Kaufman Brothers increased it to $295 from $253; and Thomas Weisel Partners lifted its price target to $280 from $270. Susquehanna raised its price target to $275 from $260, while Barclays kept its target unchanged at $285. Shares of Apple were up 0.9 percent in afternoon trade to $238.14. The stock last week hit all-time highs in anticipation of the debut of the tablet computer on Saturday. BMO Capital Markets analyst Keith Bachman called the first-day sales figure "reasonable, but not a blowout number." He said the iPhone sold at a similar pace to the iPad in the early going. iPhone sales passed the 1 million mark after 74 days in 2007. Apple's first-day iPad sales included deliveries of pre-ordered iPads to customers -- which may have helped depress opening day crowds at some locations -- as well as shipments to sales partners and sales at Apple retail stores. Analysts expect the company to sell 1 million or more iPads in the current quarter ending in June. Wall Street expects the company to sell around 5 million in 2010, although estimates vary widely. Only the Wi-Fi version of the iPad went on sale Saturday, and only in the U.S. Apple will expand to nine international markets, and roll out a 3G-compatible iPad, later this month. FESTIVE MOOD Media companies are not the only ones counting on the success of the iPad. Those include Samsung Electronics Co Ltd, up 1.5 percent; LG Display Co Ltd, up 2.2 percent; Broadcom Corp, up 4.5 percent; and Texas Instruments Inc, up 3.1 percent. Others may be quaking. Susquehanna Financial analyst Jeffrey Fidacaro said the iPad was likely to take share from Amazon.com Inc's Kindle because of its robust e-reader capabilities. There did not appear to be any supply issues on the iPad's opening weekend, as some had feared, with only a few reports of stores selling out, as was the case during the iPhone's launch. Long lines and boisterous crowds emerged at Apple stores in big cities such as New York and San Francisco, but some stores in suburban areas were not as crowded. Oppenheimer & Co analyst Yair Reiner said in a research note that the launch day performance was "a measure of brand loyalty among Apple devotees, who would buy virtually anything bearing that magical fruity logo. For others, it will take time to recognize a compelling use case for the device." Apple said iPad users downloaded more than 1 million applications from the company's App Store and more than 250,000 ebooks from its iBookstore during the first day. (Additional reporting by Franklin Paul in New York and Supantha Mukherjee in Bangalore; Editing by Edwin Chan and Gerald E. McCormick) Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters Apple's iPad debuts strongly, but key tests remain SAN FRANCISCO (Reuters) - Apple Inc said it sold more than 300,000 iPads on the tablet computer's first day in stores, a strong showing that roughly matched Wall Street forecasts and mirrored the iPhone's debut in 2007. Microsoft to announce "Pink" phone next week Already strained, AT&T soon to cope with iPad Apple to preview new iPhone software IMAX puts 3D spin on science films with "Hubble 3D" Sharp to launch advanced 3D panels for mobile gear » More Top News "I lied to a lot of people" Tiger Woods took full responsibility for the scandal that prompted his leave from golf and vowed to give the sport more respect ahead of his return to the Masters. Full Article Highlights: Tiger faces the media Video: Golf fans cheer Woods Slideshow: Return of the Tiger 2010 Masters The little guys get their payday While the world took aim at Wall Street pay practices, bailed-out heartland banks were quietly giving their CEOs hefty raises. Full Article JPMorgan’s crisis lead may be gone "Too big to fail" in crosshairs Banks © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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