Wednesday Apple Rumors – iPad 2 Sellout in U.S. May Delay Global Sales Push

Here is your daily Apple rumors roundup. Apple Inc. (NASDAQ: AAPL) developments on Wednesday include warnings of a global iPad 2 sellout, an update on the Verizon iPhone market share and iTunes video rentals. On with the Apple stock news

iPad 2 Sellouts Signal Trouble: Apple’s latest tablet, the iPad 2, is selling as briskly as most analysts predicted. But as with the first iPad, the gadget’s success may cause problems for Apple’s business outside of the U.S. Ticonderoga Securities analyst Brian White told Apple Insider that the Tuesday shipment of the iPad 2 sold out by early afternoon based on stores in San Francisco and New York City. This was not just due to demand but also a markedly smaller shipment of tablets this time. White believes that the iPad sellout and low shipment numbers mean that the tablet’s March 25 release in 25 countries including the U.K., Australia, and Canada may be extremely limited or delayed. Apple has already delayed the iPad 2’s release in Japan, but obviously due to the nationwide crisis there in the wake of the earthquake.

Verizon Subscribers Make Up More Than 10% of U.S. iPhone Users: According to mobile advertising firm Chitika’s tracking of registered iPhone users on AT&T (NYSE: T) and Verizon (NYSE: VZ), Verizon snagged 3% of the overall iPhone user base when it got the Apple smartphone in February. Website Mac Rumors reported on Tuesday that Chitika now estimates Verizon controls a 10.4% share of the U.S. iPhone market after just one month selling the smartphones. Though the numbers just a month since the Verizon iPhone’s launch is impressive, Chitika’s numbers seem to show that Apple has not seen nearly the market penetration that was expected  on Verizon’s network. In short, the iPhone is a hit with Verizon customers but not quite the hit some hoped.

iTunes Digital Video Rentals and Sales Dwarfed by Netflix: A Tuesday report from the NPD Group found that Netflix (NASDAQ: NFLX) now accounts for 61% of all digital movie viewings in the United States, a commanding lead over competitors like Amazon.com (NASDAQ: AMZN) ants is Amazon Prime and especially Apple’s iTunes video streaming services. Though a pioneer in digital movie rentals and sales, the iTunes Store now controls just a 4% share of the U.S. market. NPD’s survey found that even though consumers are aware of the superior choice available on purchase services like Apple’s, they prefer the value proposition and ease of use offered by Netflix’s streaming service. Apparently the idea of a video library is dead, and consumers would rather just watch a flick once and be done with it.

As of this writing, Anthony John Agnello did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, https://investorplace.com/2011/03/apple-inc-rumors-nasdaq-aapl-ipad-2-sales-sellout-verizon-iphone/.

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