Apple Tablet computer to bring in $US1.2 billion

The analyst who first predicted tech giant Apple will release a tablet computer product in the first quarter of 2010 has claimed the device could bring in $US1.2 billion for the company.

Gene Munster, senior research analyst from Piper Jaffray, wrote in a new report last week that if the device is launched in early 2010, costs about $US600 and sells two million units, Apple would gain $US1.2 billion – increasing total revenue by 3%.

Some analysts doubt the viability of such a device, claiming tablet computers released by other companies haven’t been received well by consumers. But Munster said in the report that Apple is targetting a wider demographic than the tech-head crowd.

“While at first glance this may appear to address a niche market, we believe the addressable market is larger than that of the Apple TV, of which Apple sold about 1.2 million in its first year,” the report said.

Munster said the gadget will be marketed towards consumers looking for a cheap computer that can also provide email and web browsing services, but is bigger than the iPod Touch or iPhone.

“We believe an Apple tablet would be priced at 30% to 50% below the $US999 MacBook, and would offer best in class web, email and media software,” Munster wrote. “In other words, we believe Apple’s tablet would compete well in the netbook category even though it would not be a netbook.”

He also wrote there is a possibility the device could run apps from the App Store, opening up new revenue streams for current application developers.
“Apple could choose to simply run the current App Store apps on the larger device, with enough usable space for multiple apps to run (multi-tasking),” the report said.

“Key apps, like Safari and Mail, could be made larger to make use of the larger screen resolution, making Apple’s tablet appealing for more extended use, and the company could continue to leverage its primary asset in mobile computing, the App Store, in this scenario. We believe this is the most likely scenario given the success of the multi-touch platform and the App Store ecosystem, which could be accelerated with a tablet device.”

Munster wrote that Piper Jaffray has contacted an Asian supplier, which claims it has received orders from Apple for a touch-screen device that must be finished by the end of the year.

“This data point underscores our thesis that a tablet will likely launch in early CY10,” it said.

The report comes after two rumours were published by AppleInsider and the Financial Times, which both reported that Apple will release a tablet device in the first few months of 2010.