iPad Accessory Sales Take Off

Accessories for the iPad may prove to be a bonanza, especially for retailers who are lucky enough to sell Apple’s coveted tablet.

Accessories such as cases and screen protectors as well as Bluetooth keyboards, are selling at a rate of 4 for every iPad, says consultant Robert Heiblim of Blue Salve.

Since the iPad’s margin is a slim 12 percent, demand for accessories is critical to the success of tablets at traditional retailers. And so far, so good.

Distributor D&H says, “The iPad accessories are already big…from the very beginning it’s been a great success,” according to senior VP sales Jeff Davis.

Datavision in New York City says the iPad is selling a rate of hundreds a week and is bringing in store traffic. It is also generating strong accessory sales at the time of purchase. Customers are buying cases, Bluetooth keyboards and stands. And, “They are buying styluses, screen protectors, skins, USB adapters, cameras…” said Datavision’s Al Liniado who adds that sales are better than for the iPod.

The Computer Loft in Allston, MA said it is “ definitely” seeing a high rate of accessory sales at the time of purchase, especially in cases.

By units, accessory sales for the iPad are lower than for the iPod, but the growth rate for iPad accessories is much higher and the price tags are higher, says Heiblim.

Apple said it sold $100 million in iPad accessories in the recent quarter. And the NPD Group’s Ross Rubin considers that a good start. “Because of its larger size, we may not see as many docking solutions for the iPad [as for the iPod], but AirPlay should facilitate integrating the iPad into more usage scenarios around the home.”

Also new accessories such as cases with built in keyboards are expected to become hot items for the iPad.

The market is still young. D&H stocks about 300 iPad accessory products compared to about 900 for the iPhone and almost 1,300 for the iPod.

About 40-45 million iPads are forecast to sell in the U.S. next year on top of 15 million units this year, says Heiblim.

Apple is still slowly approving regional consumer electronics for the iPad. Adorama in NYC just received the iPad demo unit and will start selling the tablet shortly. Sixth Avenue Electronics said it’s hoping to stock the iPad in January. P.C. Richard & Son said it won’t carry the iPad for Q4 but it will offer Archos 7” and 10” tablets.

Source: CEoutlook