iPad everywhere!

On October 12th the Wall Street Journal reported that Apple’s iPad would soon be sold in Wal-Mart. The giant retailer was slow to negotiate selling rights from Apple, falling behind Best Buy, which began selling the iPad ever since it was launched in April, and Target, which began carrying the iPad last month.
Wal-Mart announced that although it is late to carry the product, it would make up for time lost with sales.

Wal-Mart is expected to sell the iPad in more than 2300 locations by mid November in time for the holiday season, showcasing the iPad in special interactive displays. Despite the company’s reputation to “roll back” prices, the retailer will be selling the iPad with no discounts. The cheapest iPad, a 16-gig wifi model with no 3g capabilities has a hefty MSRP of $499.

Despite the competition and inability to increase profit margins due to Apple’s strict pricing, I recognize Wal-Mart’s interest in the iPad and believe the retailer will generate great profits. The profits won’t necessarily be the low margins of selling the actual iPad but rather the accessories that compliment it.

Furthermore, it is becoming increasingly obvious that the iPad has become the holiday’s hottest product. Analysts now believe that Apple will sell between 11 to 12 million iPads this year, which is double than what Apple expected to sell.
Wal-Mart slow response to consumers demand for the iPad must of resulted in lost profits, but as mentioned above, it’s hard to compete with over 2300 locations.

Finally, I just have to mention that it is very interesting to watch such a craze for a product that costs over $500 during one of the worst economic times this country has ever seen. Could this be another sign of hope?

Written by Michael Milner
Article source: http://online.wsj.com/article/SB10001424052748704518104575546570833654304.html?mod=WSJ_Retailing_leftHeadlines