Quantcast Analyst: iPad 2 Smart Cover To Generate $1B In Revenue « iPad in Canada Blog - Canada's #1 iPad Resource iPad in Canada Blog – Canada's #1 iPad Resource

Analyst: iPad 2 Smart Cover To Generate $1B In Revenue

by on March 14th, 2011

Asymco analyst Horace Dediu has published a report that the iPad 2 Smart Covers will generate over $1 billion in revenue for Apple in 2011.

Dediu estimates that 60% of the 36 million iPad 2 tablets, at this time an estimate, to be sold in 2011 will also be purchased with a Smart Cover.

With an average Smart Cover price of $48, which is based on estimated sales of 70% polyurethane and 30% leather, and sales of 21.6 million Smart Covers, the final figure is $1.04 billion.

Additionally, Dediu believes that Smart Covers could add $777 million to Apple’s gross margins. This is based on an estimated $12 for cost of production.

“It will be interesting to compare the Smart Cover business with competitor tablet businesses,”

Apple has not yet announced any Smart Cover sales figures, but they are expected to make an announcement soon.

[Asymco]

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