Search

Apple’s $1.2 billion tablet computer

Piper Jaffray senior analyst Gene Munster took another crack at the Apple (aapl) tablet computer he's been writing about for months, issuing a report to clients Friday that included some back-of-the-envelope sales estimates and a computer-generated rendering of what he thinks it will look like.

"Last week we spoke with an Asian component supplier that has received orders from Apple for a touch-screen device to be fulfilled by late [calendar year] 09," he writes. "This data point underscores our thesis that a tablet will likely launch in early [2010]."

The device, as he sees it, will...

<!-- more -->

  • Be similar to an iPod touch, only larger, capable of running most of the 70,000 applications on the iPhone App Store plus a new category of apps designed for the bigger screen.
  • Will be used primarily for Web surfing, e-mail, and digital media, competing with netbooks without being a netbook.
  • Will be priced between an iPhone and a MacBook -- between $500 and $700.
  • Is likely to include a 3G cellular modem and could be subsidized by a carrier -- either AT&T (t) or Verizon (vz).
  • Will sell better than Apple TV did its first year (1.2 million units).
  • Could in fact sell 2 million units at $600 each to generate $1.2 billion and add about 3% to Apple's revenue stream in calendar 2010.

See also:

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions