Apple iPad Sales Could Reach 20 Million In The December Quarter; Does It Matter?

Apple Inc.'s AAPL popular tablet could sell a large amount of units this Christmas.

DigiTimes' channel retail sources say that Apple will "have the chance" to sell 20 million iPads during the December quarter. That is a large number of units for a device category that is declining steadily.

It would still represent a decline for Apple, however. The company sold 22.9 million tablets during the 2012 holiday shopping season and 26 million during the same period in 2013.

"I can tell you 20 million is not second rate," Global Equities Research analyst Trip Chowdhry told Benzinga. "It's a huge number. Multiply that with an average selling price of $600. We're talking billions!"

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Big Money

iPads vary in price from $249 for the first-generation iPad Mini to $829 for the iPad Air 2 with cellular support and 128GB storage.

If Chowdhry's estimate is correct, Apple would accumulate $12 billion ($600 x 20,000,000 = $12,000,000,000) in revenue from the iPad alone.

"One thing is clear: one device cannot be optimized for all use case scenarios," said Chowdhry. "We have seen that with Microsoft Windows 8. Basically, Apple's strategy is to have a device optimized for each use case."

Chowdhry described the iPad as a "lean back" device, while MacBooks and iMacs are "lean forward" products.

"For mobility, you have iPhone," Chowdhry added. "Then there is something called 'convenience of connectivity,' and that's what Apple Watch [is for]."

Chowdhry found that the average user glances at their iPhone 110 times a day. Thus, Apple Watch would be a convenient device by allowing consumers to glance at their watch instead of digging into their pockets for a six-inch phablet.

Does Big Money = Right Path?

Apple might be rolling in dough, but not everyone is pleased with the company's performance.

"I'm not sure what's going on with Apple right now," Tony Pelz, co-founder of CEO of Chimera Research Group, told Benzinga. "They seem to be in a pretty dangerous position. I think it's pretty much downhill."

Thus far, Pelz has been unimpressed by Apple CEO Tim Cook.

"I don't think he's performing as well as he could be," he added. "Some of the products have some awkward features. I think Apple needs to right the ship."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.