All Eyes On The iPad

The iPad shifted an estimated 300,000 copies on its first day of release in the US, meaning it had first day sales of at least $150 million (on the basis that all buyers bought just the base, 16 GB model, which has a price tag of $499 – obviously not the case). Not too shabby.

It is highly likely, however, that these first day sales represent purchases by loyal Apple consumers. Think of it as the “Britney effect”. In the music world, when a new album drops by a popular artist, the first week sales can be very healthy, as loyal fans rush out to buy it or pre-order in advance. Billboard regularly tracks 300,000+ opening week sales for album releases by the biggest music A-Listers.

Big opening weeks do not necessarily indicate lasting success. Mariah Carey had the best first week sales of her career in 2008, when E=MC² debuted at No. 1 on the Billboard 200 with 463,000 copies sold. But then the album’s sales tailed off as the record failed to strike a chord with the general public, who had embraced Mariah’s previous comeback album, The Emancipation of Mimi.

Reviews for the iPad are now coming in from the blogosphere and worldwide media. Apple knows how to build hype for its products and its marketing team is second to none. With that said, hype can and will be destroyed if the iPad is deemed a pointless and expensive product; a device trapped in limbo between a laptop and a smartphone without the functionality of either.

The iPad needs to add something to the market. It will only be a “game changer”, as Steve Jobs puts it, if it stands out as a useful creation all by itself. All eyes are now squarely focused on whether the iPad can achieve this.