When Bad News is Really Good News for Apple
Apple says iPad has been a "runaway success" in the United States, already selling a half-million units, with pre-orders for the 3G version going briskly.
That's the good news.
The bad news?
Because of that success, Apple will need to postpone the international roll-out of iPad by a month. We've already seen a kind of iPad black market spring up in places like India, where the $500 wi-fi model is selling for over $2,000. This might only increase that nasty activity.
Meantime, Apple shares are off to the races.
500,000 units of a device in a market segment that no one knew for sure would be a hit. Except, obviously, Steve Jobs and team. No two ways about it: iPad is a stunning success. Let's see if today's financial peak behind the curtain leads to new estimates and another upgrade parade on Wall Street.
Apple's complete statement: "Although we have delivered more than 500,000 iPads during its first week, demand is far higher than we predicted and will likely continue to exceed our supply over the next several weeks as more people see and touch an iPad™. We have also taken a large number of pre-orders for iPad 3G models for delivery by the end of April.
Faced with this surprisingly strong US demand, we have made the difficult decision to postpone the international launch of iPad by one month, until the end of May. We will announce international pricing and begin taking online pre-orders on Monday, May 10. We know that many international customers waiting to buy an iPad will be disappointed by this news, but we hope they will be pleased to learn the reason—the iPad is a runaway success in the US thus far."
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