In a note to investors on Thursday, RBC Capital Markets General Manager Mike Abramsky reiterates the firm’s belief that the tablet market is poised to explode over the coming years. RBC forecasts a rise in global tablet revenue from $11 billion in 2010 to $70 billion in 2014, noting that leadership will be achieved through a differentiated user experience, innovation, value and the surrounding software ecosystem, among other things. Abramsky views Apple’s iPad as the clear leader in the space right now, though he notes that the iOS tablet’s dominance will likely be short lived. “While Apple’s iPad may continue to set the bar high for experience, we expect Android to dominate (40% share Tablets by 2014), given its broader support from OEMs and carriers and expected budget-priced Android Tablets from Asia,” Abramsky writes. But he also notes that several Android tablet makers will exit the market along the way. “Too many vendors entering the market sets up for a pending shakeout.”
In a note to investors on Wednesday, RBC Capital Markets Managing Director Mike Abramsky reiterated the firm’s confidence in Apple’s upcoming next-generation iPad. RBC predicts that Apple will sell 30 million iPad 2 units between April 2011 and March 2012. Apple will unveil the iPad 2 at a media event next week, and the tablet is expected to launch in late March or early April. Abramsky discusses expected hardware specifications for the iPad 2 in his note, which include a faster 1.2GHz processor, 512MB of RAM, a rear camera, a front-facing camera for FaceTime video chat and a thinner, lighter case. He also notes that initial supply may be constrained due to component availability, however, which jibes with our earlier report.
Data from a survey released by RBC Capital Markets on Wednesday suggests that Apple customers’ buying intentions will not be impacted by Apple CEO Steve Jobs’ eventual departure from his role as chief executive. While pundits and analysts continue to panic over the possibility that the Apple chief may relinquish his role while on medical leave, RBC’s survey suggests customers aren’t quite as worried. 3,091 Apple customers responded to RBC’s survey between January 31st and February 9th, and 93% said they would continue buying Apple products once Jobs steps down. These results differ from data obtained from a similar survey conducted when Jobs took medical leave in 2008. At that time, 18% of respondents said they would be less likely to buy Apple’s wares. RBC suggests that the results indicate “Apple may be bigger than its CEO,” and that the company will continue to thrive in his absence. During Jobs’ last medical leave, Apple stock rose 144% and revenue rose 20%. RBC does note a potential long-term negative impact however, as Jobs is currently viewed as “Apple’s chief innovator, dealmaker, leader, motivator, and is deeply involved in minute decisions.”
In a note to investors on Tuesday, RBC Capital Markets General Manager Mike Abramsky issued the firm’s estimates for sales of Verizon Wireless’ iPhone 4 during its first week and first quarter of availability. Best on the firm’s pre-order estimates, RBC believes that first-week sales of Verizon’s iPhone 4, which goes on sale tomorrow, will surpass 1 million units. Channel inventory at launch is estimated to be between 1 and 1.5 million units, and Abramsky thinks the entire inventory may be depleted during the phone’s first week of availability. RBC also projects that between 3 and 4 million Verizon iPhone 4 units will be sold during the first quarter of 2011. Finally, RBC notes that its previous estimates of between 9 and 10 million Verizon iPhones being sold during the 2011 calendar year may be conservative. Verizon Wireless took pre-orders from existing subscribers on February 3rd and stated that the highly anticipated smartphone broke its previous first-day sales record in less than two hours. Pre-sales were available for a total of 17 hours and analyst estimates for total pre-sales on February 3rd are as high as 500,000 units.
In a note to investors Tuesday morning, RBC Capital Markets GM Mike Abramsky suggests that RIM may sell 6 million BlackBerry PlayBook tablets in the device’s first year of availability. In an independent survey of 1,100 consumers conducted after the Consumer Electronics Show in January, RBC found that 6% of respondents were likely to purchase the BlackBerry PlayBook once it comes available. This represents almost 50% of the interest shown in the iPad ahead of launch, according to a similar RBC survey. The firm’s data shows that the PlayBook is appealing to early adopters and power users, and key areas of interest compared to Apple’s iPad include the 7-inch form factor, impressive specs, multitasking capabilities, speed and power, the BlackBerry brand and the security features. As a result of the strong buying intentions revealed by its survey, RBC contends that the PlayBook could sell 4 million units in the 2011 calendar year and 6 million units in its first 12 months of availability. The firm’s new sales estimates are significantly higher than Wall Street’s consensus of 2-3 million units in the 2011 calendar year. RBC expects the Wi-Fi-only version of the BlackBerry PlayBook to launch in mid-March at a price point between $399 and $449, with 3G and 4G versions to follow this summer. The firm also reiterated its price target of $90 for RIM’s stock.
Just one week ago, RBC Capital Markets Managing Director Mike Abramsky sent a price target revision to investors upping the firm’s target for Apple stock from $365 to $395. Following Apple’s monster quarter, RBC issued a new revision — this time raising its target to $425. Apple’s conservative second-quarter guidance of $22 billion still beat the Street’s $21 billion, and Abramsky points out that Mac shipments grew faster than Windows PC shipments for the 19th consecutive quarter. The firm now expects Apple’s 2011 fiscal year revenue to come in at $99 billion, up from its earlier estimate of $90.8 billion, and FY12 revenue estimates have been upped from $103.3 billion to $108 billion. Abramsky also notes that while Jobs’ medical leave may have a near-term impact on Apple’s stock, the company’s huge momentum remains intact.
In a price target revision sent to investors Wednesday morning, RBC Capital Markets Managing Director Mike Abramsky raised the firm’s target for Apple stock to $395 from $365. RBC also raised its revenue estimates, speculating that increased demand and new product launches would drive Apple’s revenue to $90.8 billion in the 2011 fiscal year and $103.3 billion in 2012. Abramsky’s revised figures put Apple’s first quarter revenue at $25 billion, above the Street’s consensus of $24.2 billion, and the second quarter will dip slightly to between $20 and $21 billion. Apple is expected to sell 3 million Verizon iPhones in the second quarter, with unit sales totaling 9 to 10 million in the calendar year. Based on the addition of the Verizon iPhone and strong demand for the upcoming fifth-generation iPhone, which is expected to launch in June or July, RBC estimates that Apple will sell 70 million iPhones in the 2011 calendar year — 19% of the estimated global smartphone market.
In a note to investors on Monday, RBC Capital Markets Managing Director Mike Abramsky stated that Verizon Wireless may sell 9-10 million iPhones in 2011. The figure represents RBC’s preliminary estimates covering the 2011 calendar year. RBC’s projection is up to double the street’s earlier consensus of 5 million units. Abramsky notes that while Apple CEO Steve Jobs may make an appearance at the Verizon Wireless iPhone event scheduled to take place tomorrow, RBC does not anticipate additional product announcements. Previous rumors suggested Apple might also announce an iPad 2 compatible with Verizon Wireless’ data network at the event. Verizon Wireless is expected to announce the CDMA iPhone at a special press event tomorrow, January 11th, and BGR reported exclusively that the device looks set to launch on February 3rd.
The iPad is such a hot commodity that, according to RBC Capital Markets analyst Mike Abramsky, U.S. sales of the slab-let have likely outpaced sales of Apple’s Mac computers. After a series of retail checks, which found most iPad retailers out of stock of the 3G model and very few Wi-Fi models left, Abramsky believes Apple is moving approximately 200,000 iPads a week versus 110,000 Macs. Abroad, where only recently customers were able to put in pre-orders, Abramsky believes Apple received orders for over 600,000 units. When all is said and done for calendar year 2010, the RBC analyst is predicting that Apple will have sold some 8,130,000 iPads. Not bad for gadget that costs, at the very least, $499. Could the iPad eat into Mac sales? Yes, to the tune of 25% according to the analyst. However, the drop in Mac sales didn’t diminish Abramsky’s price targets: $350/share with revenues of $59.7 billion for 2010. Yikes! More →