Survey Sees Pent-Up iPad Demand, Some Cannibalization of Other Apple Products

In research note released this morning, RBC Capital Markets analyst Mike Abramsky shares the results of a ChangeWave survey of over 3,200 respondents earlier this month revealing pent-up demand for Apple's forthcoming iPad, with demand even exceeding that for the original iPhone in 2007. According to the survey, 13% of respondents are either somewhat or very likely to purchase an iPad, compared to only 9% in a similar survey conducted prior to the launch of the original iPhone.

100456 ipad demand
Percentage of respondents likely to buy iPad (Feb 2010) and iPhone (Apr 2007)

The survey also provides an interesting glimpse at model preferences for potential iPad buyers, with the highest percentages of buyers planning to purchase the low-end 16 GB Wi-Fi-only model at $499 and the high-end 64 GB Wi-Fi + 3G model at $829. Demand for the various capacities among the two iPad lines clearly shows opposing relationships, with budget-conscious customers focused on the Wi-Fi-only model opting for only 16 GB of storage while those springing for the added 3G connectivity are also preferring to max out on storage at 64 GB.

100456 ipad model demand
Model preferences for potential iPad buyers

The report also notes that only 8% of customers have balked at iPad pricing, significantly lower than the 28% who were unwilling to pay Apple's prices for the original iPhone prior to its launch.

In examining probable cannibalization of existing Apple products, the RBC/ChangeWave survey found 25% of respondents planning to delay purchasing one or more other Apple products in favor of obtaining an iPad, with the iPhone, iPod, and Mac notebooks all seeing potential hits in the 9-10% range. Cannibalization appears significantly lower for Mac desktop machines and the Apple TV.

100456 ipad cannibalization
Percentages of planned iPad buyers delaying purchases of other Apple products
(Sums to 33% due to some respondents delaying purchase of more than one product)

While the survey results suggest possible strong early adoption of the iPad and upside compared to previously-estimated customer purchasing plans, RBC continues to predict a base case of five million iPads sold for calendar year 2010, adding $2.4 billion in revenue and an additional $0.33 per share of earnings to Apple's bottom line.

Popular Stories

Apple WWDC24 Apple Intelligence hero 240610

Apple Explains iPhone 15 Pro Requirement for Apple Intelligence

Wednesday June 19, 2024 4:48 am PDT by
With iOS 18, iPadOS 18, and macOS Sequoia, Apple is introducing a new personalized AI experience called Apple Intelligence that uses on-device, generative large-language models to enhance the user experience across iPhone, iPad, and Mac. These new AI features require Apple's latest iPhone 15 Pro and iPhone 15 Pro Max models to work, while only Macs and iPads with M1 or later chips will...
Apple Intelligence General Feature

Apple Intelligence Features Not Coming to European Union at Launch Due to DMA

Friday June 21, 2024 9:44 am PDT by
Apple today said that European customers will not get access to the Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing features that are coming to the iPhone, iPad, and Mac this September due to regulatory issues related to the Digital Markets Act. In a statement to Financial Times, Apple said that there will be a delay as it works to figure out how to make the new...
iPhone 16 Pro Max Generic Feature 2

5 Biggest Changes Rumored for iPhone 16 Pro Max

Wednesday June 19, 2024 5:00 am PDT by
Given Apple's rumored plan to add an all-new high-end tier to its iPhone 17 series in 2025, this could be the year for Apple to bring its boldest "Pro Max" model to the table — the kind of iPhone 16 upgrade that stands tall above its siblings, both figuratively and literally. If you have been holding out for the iPhone 16 Pro Max, here are five of the biggest changes rumored to be coming...
Apple Vision Pro 2 Feature 2

Apple Reportedly Suspends Work on Vision Pro 2

Tuesday June 18, 2024 8:17 am PDT by
Apple has suspended work on the second-generation Vision Pro headset to singularly focus on a cheaper model, The Information reports. Apple was widely believed to have plans to divide its Vision product line into two models, with one "Pro" model and one lower-cost standard model. The company is said to have been deprioritizing the next Vision Pro headset over the past year, gradually...
back to school 2024

Apple's 2024 Back to School Sale Launches, Up to $150 Gift Card With Mac or iPad

Thursday June 20, 2024 4:29 am PDT by
Apple has launched its annual Back to School promotion for college students in the United States. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad. Apple is also offering students 20% off AppleCare+ plans. Apple is offering a $150 gift card with any new MacBook Air, MacBook Pro, or iMac, and a $100 gift card with the purchase of any new M4 iPad ...
iOS 17

Apple Releases First Public Beta of iOS 17.6

Thursday June 20, 2024 10:18 am PDT by
Apple today seeded the first betas of upcoming iOS 17.6 and iPadOS 17.6 updates to public beta testers, with the betas coming a few days after the initial iOS and iPadOS 17.6 developer betas. Public beta testers can get the beta by opening up the Settings app, going to the Software Update section, tapping on the "Beta Updates" option, and toggling on the iOS 17 or iPadOS 17 Public Beta....