Factors Driving Higher iPad Demand

We believe there are a few leading factors that will drive demand for the iPad:

1. iPad's Attractive Design With Multi-Touch and Color

The iPad is designed to be an ultra-thin and light-weight gadget, handy for people who travel often. iPad's unique multi-touch screen-based user interface attracts users to use it as a an improved reading experience for books, magazines and websites. This experience is considered better compared to the smaller devices like the iPhone and iPod Touch, as well as black and white alternatives like the Kindle.

2. Apps and eBooks Contributing to the Success

To date, 12 million iPad apps along with over 1.5 million eBooks from Apple's app store have been downloaded. iPad's larger screen compared to the iPhone gives developers an opportunity to provide more features and improve the graphics of an application. The larger screen also encourages apps for the iPad that wouldn't otherwise be available for the iPhone. The availability of a wide-range of entertainment and productivity apps is an important driver of demand for the iPad.

3. Holiday Season Boost and International Sales

Consumer electronics sales typically see a boost during the U.S. holiday season and we expect strong demand for the iPad among holiday shoppers. Furthermore, Apple is moving quickly to distribute the iPad internationally and this will be an important factor for why iPad sales in 2010 could continue to outperform the past iPhone sales.

For additional analysis and forecasts, here is our complete model for Apple's stock.
Trefis is a financial community structured around trends, forecasts and insights related to some of the most popular stocks in the U.S.

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