14 DAY TRIAL // Maynard Um, an analyst with UBS Investment Research, corroborates rumors of Apple’s iPad eating away at notebook PC sales in an investor note saying that consumers are projected to buy at least 28 million units in 2011.
The UBS Investment Research analyst reportedly increased his price target for AAPL stock from $340 to $350
According to AppleInsider, UM said there was no evidence that the iPad was affecting sales of Macintosh computers. Still, the tablet is "adversely affecting the PC industry" as a whole, he noted.
"Sales of traditional notebooks appear to be feeling pressure from the iPad, causing a scramble by vendors to launch iPad-like tablets," Um wrote.
"We believe that a majority of this impact is occurring on the lower end of PC sales as the iPad is priced close enough to this range that it becomes attractive to consumers looking to make purchases within this segment."
"We are not sold that the iPad is purely cannibalizing PC sales, as the functionality of the iPad cannot yet deliver the functionality of notebook PCs,” he continued.
“However, consumers who purchase iPads may be more willing to delay purchases and upgrades of existing PCs."
As noted above, Apple is on track to sell some 28 million iPads in 2011, at least in Um’s projections.
The number could be "conservative," he cautioned.
Um is also one of many Apple-watchers who believes the Cupertino-based giant is planning to release a CDMA-compatible iPhone 4 next year.
A potential carrier is Verizon (in the U.S.), Um said. If proven accurate, Um believes Apple will ship 52 million units in the year 2011.
"We continue to favor product plays such as Apple as the company should have some of the most highly sought after products in the holiday quarter," Um wrote.
"Despite tough economic conditions, consumers remain willing to pay for innovation.”
“Despite increasing competition in smartphones and that which is soon to come in tablets, Apple's ability to keep its products fresh and innovative gives us confidence in our estimates going forward," Um concluded.