New Covers For iPad 2

The new iPad 2 Smart Covers could generate over a $1 billion in revenue for Apple.

I'm estimating that at least 60% of iPad buyers will get one. Based on an estimate of 36 million iPads sold in 2011 and an average price of $48 (70% polyurethane and 30% leather mix), the total revenue for Smart Covers will top $1 billion this year.

I further estimate that with a very modest gross margin of 75% (average cost to produce of $12), the Smart Cover could contribute $777 million to Apple’s gross margins.

Dediu notes that it would be interesting to compare Apple's Smart Cover business with other competitors tablet businesses.

For more news coverage, you can follow us on Twitter or become a fan on our Facebook page, we will keep you updated with posts over the web.


If you found this post useful, dont forget to click the +1 button =>  

Follow GreenPois0n on Google+


blog comments powered by Disqus