“I continue to be amazed by Apple.

It was been reported this week by Morgan Stanley analyst Katy Huberty that Apple recently doubled monthly production of iPads to 2 million units per month.  Apple has also indicated to its supply chain that it wants to move to producing 3 million units per month by the 4th quarter, which implies that they will produce (and sell) 36 million iPads annually in 2011.  I do not have one yet, but I want one, and apparently so do a lot of other people.

If one does the math, and conservatively assuming that the volume is split between the two lowest price point 3G and non-3G models, the 2011 annual iPad sales volume would be $20.3 billion.  Keep in mind that this is for a product that didn’t even exist at the beginning of this year.

To put that sales volume in perspective, if iPad was a stand-alone company, its sales volume would make it number 119 on the Fortune 500 list of the largest US companies.

Taking this one step further, iPad would be larger than American Airlines, Nike, Kimberly-Clark, Goodyear, and Xerox.  It would also be roughly the same size as Marriott and Starbucks combined.   Again, this is for a product that did not even exist at the beginning of the year.”

Edward Jenkins
Senior Vice President
Atlantic Capital Bank

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