Gadgetory

I okay the ipad 2 is here Steve Jobs unveiling Apple's updated version of its tablet computer of course yesterday at that huge event in California the models are faster thinner too yes two cameras and it comes in white mark appel start getting a push higher over the last couple of days thanks in part to that announced and plus the fact of course that Steve Jobs turned up for the event which took a lot of people by surprise and made them happy can Apple continue its success and what should investors and techies everywhere take from the apple event this week andy hargreaves is a senior research analyst at Pacific Crest securities and jon rettinger is a blogger with techno Buffalo thank you both for calling us Andy let me kick off with you are a great new model thinner two cameras whereas before there were no cameras and lots of additional features nobody seems to be talking about margin here presumably the Apple two is more costly to make than the Apple one iPad does that not pull margins down well yeah I mean usually with their product transitions you're going to see a little blip in margins but they've been better than anybody at the world at managing the supply chain from a component cost perspective and I don't see anything going on right now especially with their recent component pre-purchase deals it's going to change that John a lot of people credit the bloggers as being as accurate if not more accurate than the analysts on Apple where do you see the stock going you know you were talking about margins a little lower margin can certainly be made up with bulk sales Apple moved 15 million iPads in 2010 steve jobs announced they're speculating can move as many as 40 million in 2011 so why would that take the stock in your view certainly up i think would be the idea logical explanation the market is very excited for the tablets very tablet hungry certainly Apple's been a beacon of innovation in the past the ipad 2 is dude a bit more evolutionary than revolutionary but still bringing a lot of features that people were expecting and hoping for I guess the market is is a significant pun intended core of apple buyers we're up by whatever the company comes along with our thing you know there are always the dedicated Apple fans will go out there and support the company regardless but I think what you're going to see is a huge influx of buyers that we're waiting for this generation of iPad those that were waiting for the new one to come out you here to countless Lee at apple retail stores you're at it reported online people want the thinner people wanted cameras and they were looking for faster well it's not a revolutionary design or anything that we couldn't have predicted the two times speed increase in the nine times better graphics pilots potentially are going to be a big boon to consumers let's get some awesome Andy on this whole thing Andy what do you think it's going to be an apple ipad 2 well you know it's time i mentioned the white ipad 2 is probably going to sell a shocking number as well no just it is why got thought wow what's this Michigan have white it's not that well to me but apparently do a lot of people it is you know I step back again and always look at the ecosystem advantage that these guys have and there's just nobody that can match them on content and apps and really the hardware the hardware improvements are nice they are evolutionary but it's the it's the software that's the software in the ecosystem that drive sales and I don't see anything changing the momentum that they have why do you think the salt will go to md we think it goes to 420 in the next well actually by the end of 2011 and that's based on a multiple that I think is pretty reasonable considering the growth rate right now gentlemen thank you both andy hargreaves and jon rettinger thank you thank you thanks up