SAN FRANCISCOAnalyst reaction to Apple's iPad tablet computer launch trickled out Wednesday (Jan. 27) evening, with market watchers pointing to some winners and some losers resulting from the product's debut.
Apple. An easy one. Ben Reitzes, an analyst with Barclays Capital, said he believes Apple could ship 4.9 million units in 2010 and another 8.7 million units in 2011.
Apple aficionados' wallets. Tim Luke, an analyst at Barclays Capital, said in a report circulated Wednesday that the iPad's coststarting at $499and monthly service plansstarting at $14.99were less expensive than many expected.
Qualcomm Inc. The iPad will be available exclusively through carrier AT&T for a period of three months, Luke said, but Barclays believes Verizon may also carry the product by June. "We see this as potentially constructive for wireless semi leader Qualcomm with a breakthrough in beginning to support Apple," Luke wrote.
Broadcom Corp., Triquint Semiconductor Inc. and Skyworks Solutions Inc. Luke said Barclays views the launch as a positive for Broadcom due to the potential for content in the device similar to the iPhone 3GS, which utilizes a Broadcom WiFi and Bluetooth transceiver combination solution. In the RF area, Luke believes the launch is constructive for Triquint and Skyworks Solutions Inc., which each support the Infineon baseband solution in the iPhone 3GS.
LG Display and Innolux Display Corp. According to Vinita Jakhanwal, a principal analyst at market research firm iSuppli Corp., these firms are the two most likely suppliers of the iPad's in-plane switching LCD. Jakhanwal added that the iPads display is probably sourced from three suppliers, like other Apple products.
Amazon.com's Kindle. Apple CEO Steve Jobs praised Amazon's work with Kindle during the iPad launch, but it's clear the iPad poses a clear and present danger to the e-book reader. As author and New York Times blogger Nick Bilton put it, iPad is "now clearly the best device on the market for those who enjoy reading."
Intel Corp. and Advanced Micro Devices Inc. Luke speculated that the iPad may pose a long-term challenge to the microprocessor vendors because iPad pricing is similar to that of a netbook but the product will offer strong features and functionality.
NAND flash vendors. Since iPad won't be available until late March, the product hype won't provide a near-term boost to stocks of NAND flash chip makers, though it may help the mid- to long-term NAND outlook, Luke wrote. The iPad's memory density16-, 32- or 64-GBappears to be at the lower to middle end of the market's expectations, according to Luke.