iPad Pro forecasted to earn $2.4 billion in revenue this quarter

Ian Hardy

November 25, 2015 7:04am

The iPad Pro is Apple’s big move into the enterprise market. The 12.9-inch tablet is priced in laptop territory, with Apple betting it will stand in where existing smaller iPads currently sit, as well as new situations unserved by current slates.

While Apple has not projected specific sales numbers for the iPad Pro, RBC is projecting huge sales of the iPad Pro over the next three months. In a note to its clients, RBC Capital Markets analyst Amit Daryanani is suggesting Apple will rake in an additional $2.4 billion (USD) in revenue from the larger tablet. With these numbers, Daryanani is estimating Apple will sell approximately 3 million units in the quarter, which would represent half of its iPad revenue.

In addition, RBC is also suggesting Apple’s stock is set to rise to $150 in the next 12 months, up from $118 today. “In the current environment with US$200 billion-plus in cash, we believe the stock is undervalued at these levels. From a product perspective, we believe the company can continue to gain share in both the tablet and smartphone space. In our view, the smartphone space is currently a two-horse race where Apple will be one of the winners in continuing to gain market share,” said Daryanani.

Read more: iPad Pro Review

Source Bloomberg
  • Carter Loose

    And that forcast is based on selling like 10 units… 😉

  • Marc Palumbo

    Investors are always bullish on the Apple stock since they are the most profitable organization. But since it split, the stock has been stable. I think it’s tough to see it hit $150 in 12 months, but who knows. The Apple Watch hasn’t made a difference in stock and investors don’t seem to budge when they announce record iPhone sales.

    EDIT: Why the hell am I talking stocks on MobileSyrup 🙁

    • Mo Dabbas

      That rbc guy is just following the steps of a Goldman Sachs report predictions of 43% increase in apple stocks that came last Friday.

  • norsem4n

    If the Pro garnishes that kind of return, how much is the rest of the iPad line going to be cannibalized?

    • Marc Palumbo

      This is somewhat true. I have a feeling their Mac line will take a hit as well. it almost feels like what Samsung did to their Galaxy line. Created a large product depth that customers no longer understand what they want. I found that Apple’s success came from virtually telling the customers what they want. I think when you allow them to think, the results may not end up in their favor.

      Remember the iPhone 5C? The people that bought it regret it. Could have spent a little more and get the 5 instead. No wonder they shot that down.

      In terms of iPads, you now have the Mini, Air and Pro. The Air is no longer their top brand for iPad.

    • Vito R.

      Apple has no problem with one of their products cannibalizing sales of another – especially if that product makes them more money.

    • Brad

      Yeah, Tim Cook said exactly this in response to the same question recently. He said Apple doesn’t worry if people buy more of one Apple product versus another: they’re still buying Apple products. And the margins aren’t all that different.

  • rick

    150 in 12 months – wow. Not sure I can swallow that one from RBC.

    • Marc Palumbo

      If the volume stays the same, then you’re looking at a $800 billion business. I don’t see why an extra 2.4$ billion would bring the value up by $140 billion. I think it’s a really long stretch.

  • rjmlive

    I have no idea how the ipad pro is going to be a success. Apple successfully created brand hype like no other company, but I can’t believe people will actually want this tablet. Has anyone been able to explain or breakdown how Apple built and somewhat maintains it’s brand supremacy and break it down into a formula to follow for another business?

    • Marc Palumbo

      By constantly insulting other brands and hyping their own. That and Harry Potter magic 🙂

    • Vito R.

      By consistently making products that meet or exceed customer expectations. It’s easier said than done.

  • Kevin Owens

    I don’t want to say it’s impossible because apple tends to prove me wrong when I do, but this seems way too high for a niche product, in my opinion.

    • Marc Palumbo

      Does it? Microsoft’s Surface Pro line was niche and it’s become a billion dollar business. And this is all with 10% of the tablet market. Now imagine the iPad. There are a lot of sales to people with curiosity and wants, to wanna buy the iPad Pro.

    • Kevin Owens

      Sure. All that is true. But how many generations did it take before it became 10%? This is the first iPad Pro in a market controlled by Microsoft. I don’t see anyone wanting a professional tablet going to this. I see people who already use the 9.7 iPad upgrade to this. I have a hard time seeing how they can sell even 1 million of them.

    • Marc Palumbo

      DO not question Apple enthusiasts. They will buy their products for the sake of owning the thing. Things like needs and wants go out the window. They buy just to have it.

    • Kevin Owens

      That’s true. I forgot not to doubt the cult followers.

  • iPwn8599

    I’m curious as to how this is news for a mobile news site?

    as an average user – do I really care about how much A company will make off a product they’re selling? how is that beneficial to me as a consumer? how is this supposed to help me decide what device to purchase for myself?

    • Mr Dog

      The average consumer isn’t on mobile syrup.

    • Marc Palumbo

      They’re on The Verge 😉

    • Vito R.

      They’re on CBC.

    • HelloCDN

      Yes, it is. If a company is successful at selling a product, you can be damn sure they will continue to support it. If, on the other hand, it’s a fluke, you’ll end up wasting a ton of money. Something that happened to people who bought Blackberry Playbook, for example.

    • Kevin Owens

      Are you new here? They made an article about the iwatch box. If there’s a little apple on it, it’ll be an article.. Or 10.

  • cartfan88

    Seems a stretch…a niche product like this is going to generate half of its iPad revenue? I’d hazard the mini and regular iPad will still outsell this 10-1 or higher.

  • cartfan88

    You don’t ‘Earn’ revenue as the title states. ‘Earn’ is typically reserved for referring to net income or profit. It should state generate $2.4 billion in revenue.

  • Raj Singh

    Well, I suppose they’re making products that people want.
    No surprise that they didn’t include TouchID. Might as well give people a reason to upgrade the year after.

    • Connor

      Except it does have Touch ID?

    • Raj Singh

      Unless you’re referring to the “hack” for the 100 dollar Apple Pencil, it does not have 3D Touch.

    • Connor

      Earlier, you said Touch ID. I’m going to wager that was a typo.

    • Raj Singh

      Twas.

  • Mo Dabbas

    We’ll have to wait and see. If apple announced sale numbers fast that means sales are good. If they put it under “other” category and refused to give sales numbers “coz that would give competition some advantage” then we’d know sales are not as anticipated.

    • Kevin Owens

      Don’t feed the ithrolls!

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