Apple (NASDAQ:AAPL), which has already sold 2 million iPads within 60 days of its launch, could enjoy further success through the increasing popularity of its iPad tablet device among children. Factors favoring youth adoption include iPad’s intuitive user interface, an abundance of children’s e-books, and easier access to entertainment content like cartoons and movies.
Here’s why we’re bullish on iPad as a kids’ device:
1. Intuitive User Interface
Many children lack the literacy skills and dexterity required to use a keyboard, mouse or gaming controller. But the iPad’s large touch screen and user-friendly interface make it an intuitive device for children—more so than the iPhone.
2. Increasing Popularity of Children’s E-Books
Publishers are increasingly publishing children’s books through Apple’s iBook store. Parents often find these attractive because the iBook store offers a wide variety of books for children at lower price points compared to physical books.
3. iPad Could Become an Ideal Entertainment Device for Children
iPad could replace TV as an entertainment device for children. iPad allows children to not only watch cartoons, videos and movies, but also play games and socialize through social networking apps.
iPad Sales Could Hit 20 Million by 2016
Apple sold 2 million iPads within 60 days of launching the device. Our analysis suggests that the children’s market could further accelerate iPad sales. We estimate an upside of around 3% to the $296 Trefis price estimate for Apple’s stock if iPad sales reach 20 million by the end of the Trefis forecast period instead of the 12 million that we forecast.
