There has been no shortage of hype surrounding Apple Inc.’s new iPad. While the reviews have been mixed and there is plenty of room for improvement in future generations of the device, demand and sales is what investors are focused on in the near term.
They should be happy to hear that pent-up demand for the device is strong. In fact, interest is at a higher level than it was before the iPhone was launched.
A RBC/ChangeWave survey of 3,200 people conducted from February 1-10 showed 13% of respondents are interested in buying an iPad. That compares to the 9% who indicated they might buy an iPhone in an April 2007 pre-launch survey.
This data suggest initial iPad uptake will be healthy, RBC Capital Markets analyst Mike Abramsky said in a research note.
Only 8% appear unwilling to pay Apple’s indicated iPad prices, which is below the 28% who balked at initial iPhone pricing.
Mr. Abramsky also noted that interest appears strongest for both the entry-level and tech-savvy iPad buyers, with 19% of those declaring themselves as buyers planning to buy the $499 16GB WiFi only version and 19% indicating they will purchase the $829 64GB 3G version.
“Preliminary, it appears that the iPad’s lack of Flash support, camera, multi-tasking does not appear to deter initial buyer interest,” the analyst said. “This data… suggests iPad may have greater potential than expected, to expand Apple’s addressable PC, iPod markets and to capture a segment of the home PC market.”
Of course, better than expected early iPad momentum could serve as a catalyst for Apple’s valuation.