The Product Of The Year Could Actually Be The Smart Cover
March 14, 2011
An estimated 60 percent of iPad 2 owners are expected to purchase a new Smart Cover too. This makes it the billion-dollar cover, according to ASYMCO.
When the year-end top ten surveys are revealed at the end of 2011, no doubt the iPad 2 will take a place of prominence alongside other technical products, which will define the year.
Apple’s new Smart Cover line no doubt will also make the list.
Announced by Steve Jobs at the iPad 2 event earlier this month, the covers could generate up to $1 billion in revenue for Apple this year alone, according to the marketing company.
Ultimately, this could add $777 million to Apple’s gross margins.
Available in multiple colors in polyurethane and leather, the Smart Covers cost just $12 each to produce. Apple is charging $39 and $69, respectively for each.
The 60 percent figure is especially significant considering as the name suggests, the cover only protects the iPad’s screen and not its sides or aluminum back.
How popular are the Smart Covers? While some colors are available for shipment in one to three days, others like the Apple Store-exclusive (PRODUCT) RED leather unit is sold out for the next three to four weeks, according to the Apple Store online.
The iPad 2 itself should generate $23 billion in revenue this year. The line of Smart Covers will add four percent to sales and nine percent to gross profits. Taken together, this increases the iPad 2’s gross margin from 33 percent 35 percent.
What do you think? Are you buying a Smart Cover? Leave your comments below.