Leading up to the release of the Apple iPad, the tech world was buzzing all winter long after Apple released its plan on January 27th to sell its new touch screen tablet computer starting on April 2nd. Given the amount of press coverage this innovative product recieved over the last month, its hard to ignore and can not be passed by. The most recent one being their official release on the sale of the one millionth iPad, which provoked me to dig deeper into the subject.
By taking a look at similar product releases in Apple’s past, one common trait can be seen among all of their new products: they take a high demand technology that’s in its early stages and then combine that with their marketing and design choices to characterize their product as the most innovative and advanced choice available. The iPad is no exception. First, the iPad’s most distinct characteristic is that it is a fully functional portable computer, which operates very similar to its already existing iPod touch, which has been widely popular because of its touch screen technology that was first unveiled on the iPhone. In other words, we’ve seen touch screen technology, 3G access, and portable laptops before, but never all in the same box. Apple packed the necessary computer components (minus a keyboard) into a slim metal case, and thats what has allowed them to market the iPad as the most convenient and versatile computer ever.
Now lets look at the iPad strictly from a numbers point of view:
1,000,000 iPad’s sold in 28 days. (All Wi-Fi-only models, 3G launched separately on April 30th.)
$499,000,000 Gross sales revenue. (Assuming all units sold were the 16GB model to error on the safe side. $499/each)
$260,000,000 Bill of Materials estimate. $260/each. (48% profit margin)
$239,000,000 Net Profit
Or 2,419,200 seconds in 28 days, which equates to $98.79 profit per second.
Now, this is just assuming their cheapest model available and not considering other imperative variables to the sales funnel. Either way, Apple is doing historic sales numbers on the hardware alone, just imagine the possibilities when revenue streams such as international sales, App Store commissions, and accessories are factored in. Once again Apple strikes into the market flawlessly, proving their technological drive within the tech industry as a whole. I’m looking forward to seeing how Apple once again fights off the slow competition, except this time at the touch of a screen.