Seeking Alpha

Bucking much of the bullish commentary on the eve of Apple's (AAPL -0.7%) expected launch of an...

Bucking much of the bullish commentary on the eve of Apple's (AAPL -0.7%) expected launch of an iPad 3, Global Equities thinks consumers won't line up for Apple’s new tablet if gas prices remain elevated. “Our observation is that iPad 3 will get a subdued reaction, until and unless gasoline prices fall by 25%,” Global Equities says.
Comments (37)
  • Anwar Bhamla
    , contributor
    Comments (96) | Send Message
     
    Now why could the iPad 3 not come with an app to increase your car's gas mileage OR to reduce tensions between Iran and Israel OR to reduce speculation in oil prices
    6 Mar 2012, 03:44 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    By popular demand Apple's executive may allocate some resources to do just that. If there is any company which may be able to do that it will be Apple.
    6 Mar 2012, 04:57 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    45% of existing owners of IPad already made commitment to buy it. 11% in first week. That is 1Million just in a week. What Global Equities is talking about.
    6 Mar 2012, 03:45 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    Will used Apple iPads compete with sales of new iPads?
    6 Mar 2012, 04:01 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    HerrHansa:

     

    Old Ipads goes to their grandparents.
    8 Mar 2012, 12:48 PM Reply Like
  • scott trader
    , contributor
    Comments (4529) | Send Message
     
    isnt going to stop me or any of theother
    millions of aapl shareholders.....
    6 Mar 2012, 03:48 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8154) | Send Message
     
    Apple is expected to ship 10 million iPad 3 units within the first month of its release.

     

    @ $799 each, Apple will net $475 per unit.

     

    That is ~$4.75 BILLION in pure profit in just ONE MONTH.

     

    That is equal to the total ANNUAL profits of Coca-Cola worldwide.

     

    AND THAT DOESN'T"T EVEN INCLUDE ANY OF APPLE'S OTHER PRODUCTS!!

     

    Geez, Louise !!
    6 Mar 2012, 03:49 PM Reply Like
  • shahzam
    , contributor
    Comments (49) | Send Message
     
    The new ipad will sell like a hot cake. You do not get it, most people who buy iPad buy it because they feel it will save them time, money, and sanity.

     

    People will cut other things if they have to before cutting the ipad upgrade.

     

    Honestly, I have no idea how you have come up with such predictions :-(
    6 Mar 2012, 03:49 PM Reply Like
  • Big Babu
    , contributor
    Comments (66) | Send Message
     
    Do you mean mortgage payments?
    6 Mar 2012, 07:37 PM Reply Like
  • SoCal.Sooner
    , contributor
    Comments (91) | Send Message
     
    The buyers will just carpool.
    6 Mar 2012, 03:54 PM Reply Like
  • diogeron
    , contributor
    Comments (140) | Send Message
     
    This is one of the dumber theses I've heard lately that didn't come from the GOP presidential debates. The idea that higher gas prices might cut into, say, the profits of Olive Garden, might make some sense, but the idea that people are not going to buy an iPad because of gas prices is simply absurd.
    6 Mar 2012, 03:58 PM Reply Like
  • CAL-PDX
    , contributor
    Comments (80) | Send Message
     
    Agreed. I'm a sucker for interesting and unexpected statistical correlations and followed the link the to the source content in the vain hope that they had some cool, data backed chart backing up their "observation". Alas, no luck. Just more moronic punditry.
    6 Mar 2012, 04:14 PM Reply Like
  • Vikas Agarwal
    , contributor
    Comments (21) | Send Message
     
    They even came up with a 25% decline on the gas price. It is like if gas ain't cheap, I ain't buyin that iPad. What an absurd commentary.
    6 Mar 2012, 04:02 PM Reply Like
  • kirk otis
    , contributor
    Comments (277) | Send Message
     
    I posit that as people to contend with higher gas prices they will stay home more (less Olive Garden and more surfing time) and as a result demand for iPads will increase.
    6 Mar 2012, 07:09 PM Reply Like
  • carlomiami
    , contributor
    Comments (175) | Send Message
     
    Lol,
    This is a joke ?
    Listen my fiends, I predict the iPad 3 or how ever is going to be called will be out of stock in one week or less!
    Here in my office all of my coworkers have the finger in the trigger on the AAPL web site to place the order the minute it goes on the air, and this story is repeated in many of the offices we know .
    The AAPL site just may crash !
    I am ordering 5 for my relatives as well, the iPad is such a user friendly unit , even my old patents have the 2 and now want the next generation, they do not want to deal with pc or lap tops any more.
    Portability !, computer to go, they call it.!
    6 Mar 2012, 04:03 PM Reply Like
  • zd2002
    , contributor
    Comments (151) | Send Message
     
    There's nothing inherently wrong with bucking the trend on a hot stock. But trying to correlate Apple and gas price is totally absurd. One is a product that people lust after. The other is an unavoidable expense of life. I don't remember gas being 25% cheaper this time last year, however, iPads keep flying off the shelf.
    6 Mar 2012, 04:07 PM Reply Like
  • Camden
    , contributor
    Comments (1318) | Send Message
     
    CLUELESS.
    6 Mar 2012, 04:10 PM Reply Like
  • scott trader
    , contributor
    Comments (4529) | Send Message
     
    only people that drive electric vehicles will buy new ipads...
    6 Mar 2012, 05:11 PM Reply Like
  • Duelist
    , contributor
    Comments (118) | Send Message
     
    I will reconsider my plans to buy one when gas hits about $15/gal.
    7 Mar 2012, 05:09 AM Reply Like
  • Wall Street Smart
    , contributor
    Comments (474) | Send Message
     
    Nice try. Gas price has no corelation with Ipad sales. Gas prices have a corelationship with Olive garden sales.
    6 Mar 2012, 04:26 PM Reply Like
  • Day Trader001
    , contributor
    Comments (671) | Send Message
     
    Wake up man, people will ride their bicycle to get one if they have too!
    Compare apples to apple.
    6 Mar 2012, 04:42 PM Reply Like
  • kirk otis
    , contributor
    Comments (277) | Send Message
     
    you meant Apple.
    6 Mar 2012, 07:11 PM Reply Like
  • thebrokengroup
    , contributor
    Comments (31) | Send Message
     
    I just got back from a vacation in Maui, and I was blown away by how many people had iPads at the pool and the beach. Everyone that said that the iPad would not replace books at the beach, etc were so wrong. The other thing I noticed was the large number of seniors with iPads. This product, of any other that Apple has developed, has a wide appeal across all age groups. My kids always want to play on my iPad. I will pick up a new one, and give my older one to my kids to have. iPad will continue to set new records for the next few years to come! I have also read that more and more CEOs are demanding iPhones and iPad support - so Apple is also making inroads into corporate IT departments.
    6 Mar 2012, 05:18 PM Reply Like
  • berylrb
    , contributor
    Comments (2179) | Send Message
     
    right on, "... give my older one to my kids to have ..." Ha, you never see that market group on the charts - the hand me down generation! I did the same thing with another iPad2, we have two in the house now.
    6 Mar 2012, 05:32 PM Reply Like
  • jameswparker
    , contributor
    Comments (13) | Send Message
     
    Apple will try with the ipad3 to price it at the same price as the ipad2. They did this with the iphones. The sales of the new ipads have no correlation to the price of gasoline. I have sat in a number of conference rooms listening to people discuss their ownership and purchases of the upcoming ipad. Many of them are business owners. They will order and have the product shipped. The Apple name and applications with its recent purchase of Chomp adds to applications exposure. In some instances people have ipad1, or ipad2s, and all are looking for the new ipad to replace and update what they are using.
    6 Mar 2012, 05:23 PM Reply Like
  • Skippy09
    , contributor
    Comments (1439) | Send Message
     
    We've learned have we not, from owning AAPL for so long, that the bears will come up with any reason they can find for this stock to take a dive. We've just got to learn to filter out the noise. Some day, I'm finally going to find it in me to quit commenting on this tripe.

     

    Long Apple of course.
    6 Mar 2012, 06:26 PM Reply Like
  • Big Babu
    , contributor
    Comments (66) | Send Message
     
    Would 45% of existing ipad owners donate a penny to charity this year?
    6 Mar 2012, 10:53 PM Reply Like
  • Duelist
    , contributor
    Comments (118) | Send Message
     
    No, I'm sorry...if only gas prices weren't so high :)
    7 Mar 2012, 05:12 AM Reply Like
  • Day Trader001
    , contributor
    Comments (671) | Send Message
     
    How about you matching my donations to the "Horizon House" Homeless shelter in Indianapolis!

     

    It will take a little more than a penny. For Christmas I gave them
    100-dozen pairs of Thorlo socks, to start.
    7 Mar 2012, 04:08 PM Reply Like
  • scott trader
    , contributor
    Comments (4529) | Send Message
     
    how about u matching my 100 dollar donation to the childrens leukemia foundation
    7 Mar 2012, 04:54 PM Reply Like
  • Day Trader001
    , contributor
    Comments (671) | Send Message
     
    Lol,,,, I also give to, Riley Children’s Hospital “Great organization” $100.00 is a nice thought. Any place is good!!
    7 Mar 2012, 05:23 PM Reply Like
  • scott trader
    , contributor
    Comments (4529) | Send Message
     
    $100 coaches for cancer
    7 Mar 2012, 05:26 PM Reply Like
  • Day Trader001
    , contributor
    Comments (671) | Send Message
     
    So don't be so cheap!

     

    You can also donate to Horizon House http://bit.ly/yt7yNi
    7 Mar 2012, 07:47 PM Reply Like
  • scott trader
    , contributor
    Comments (4529) | Send Message
     
    don't be so critical
    8 Mar 2012, 01:27 PM Reply Like
  • Wall Street Smart
    , contributor
    Comments (474) | Send Message
     
    I am unable to login to AAPL website for my pre order. So much for high gas prices affecting AAPL sales.
    7 Mar 2012, 04:52 PM Reply Like
  • scott trader
    , contributor
    Comments (4529) | Send Message
     
    apple preorder site is down.......I also tried......wonder what th e numbers are going to be?
    7 Mar 2012, 05:34 PM Reply Like
  • Duelist
    , contributor
    Comments (118) | Send Message
     
    I think this will be a very popular iPad version. For iPad 1 users, upgrading is a no brainer, but even for the iPad2 owners, there is much to be gained by upgrading now, especially the Retina display and the 4G. I have a iPad2, but I can't wait until the next iPad (the "newer" iPad, or "newest"?) for a Hi Res, and will be upgrading to the new iPad very soon.
    9 Mar 2012, 01:37 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|