Abramsky
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Up to 20% of iPad owners expected to upgrade
Mike Abramsky, a technology analyst for RBC Capital Markets, predicts up to 20% of the original iPad's buyers will upgrade to the iPad 2 over the next 12 months. But Abramsky suggests the number of customers upgrading to iPad 2 will be eclipsed by buyers new to the platform. With over 15 million units sold since launching last April, the original iPad is considered to be one of the most successful technology product launches in history. Abramsky, like many analysts, expects the iPad 2 to outperform its predecessor from day one. His predictions indicate Apple will sell at least 500,000 units of the iPad 2 this weekend and 28 million units before the end of 2011. These numbers suggest Apple will welcome at least 25 million new iPad customers in the coming months. Customers bought approximately 300,000 iPads on its first day of availability in April, 2010, and analysts are expecting almost twice as many to sell over the next few days.
AAPL down sharply after two ratings cuts
Bad day for Big Rainbow: RBC Capital's Mike Abramsky and Morgan Stanley's Kathryn Huberty cut their ratings and price targets on Apple stock, both citing weakness in consumer spending on PCs. AAPL was down 17.38 at 110.86 (-13.58%) as of this writing: a 20-minute-delayed chart is above. Abramsky's price target on AAPL shares is now $140 (down from $200), while Huberty's is lower at $115 (down from $178). Huberty also notes Apple will struggle because the company "does not play" in the sub-$1,000 laptop market. In a slim bit of good news, Abramsky raised his estimate of the number of iPhone units sold during the fourth quarter to six million, up from five. AAPL's price during the trading day has been its lowest in over a year.
