Will the iPad do something iTunes and the App Store so far haven’t: become significant money-makers for Apple? Nearly a third of the iPad’s revenue will come from content sales, one analyst said Tuesday.
In a note to investors, Broadpoint.AmTech analyst Brian Marshall said “the iPad offers a rich media experience that will translate into a content-based recurring revenue stream over time.” Revenue from content will be over 10 percent of iPad revenue by December and 30 percent by the same time in 2011.
Although both popular destinations, Apple has downplayed the significance of the App Store and iTunes to its bottom-line. In January, Apple finance chief Peter Oppenheimer said the Cupertino, Calif. firm makes “a bit over break even” for both services. Apple argues the real value of the two sites is drawing more buyers of iPhones and iPods.
Marshall believes the iPad is being introduced with overly pessimistic expectations. The analyst almost doubled his forecast for iPad sales during the 2010 calendar year to 4 million devices, up from 2.2 million. He broke with Wall Street predictions, saying Apple could sell up to 7 million iPads in 2010 if the tablet “lives up to expectations.”
To gauge the iPad’s chances for success, commentators need to test-drive the tablet. Although Marshall just had a few minutes with the device, he instantly saw its “true genius.”
“We were hooked after the first 15 minutes of use. In our view, the true genius of the device is its media/content aspects (e.g. eBooks, newspapers/magazines, Apps/games, movies/TV episodes, etc.) which we believe will be recurring in nature,” the analyst said.
[via AppleInsider]
