A new market analysis report claims that Apple’s behemoth, 12.9-inch iPad Pro is expected to generate upwards of $2.4 Billion in revenue for the company during the current three-month quarter, in and of itself.
In a note to investors on Tuesday, RBC Capital Market analyst, Amit Daryanani, predicted that Apple is on track to sell within the general vicinity of 3 million iPad Pro units during the holiday shopping quarter, which includes the months of November and December, 2015, as well as January 2016.
The $2.4 Billion figure was calculated by Daryanani based on an $800 sale price, per unit — ($800 x 3 million units = $2.4 Billion). However, the iPad Pro merely STARTS at $799 for the 32 GB variant with WiFi, increasing to $949 for the 128 GB variant with WiFi, and $1,079 for the 128 GB variant with WiFi and 4G LTE, respectively.
Numerically speaking, as Daryanani notes, that would equate to $600 million in operating profit for Apple in the first three months of the product’s lifespan, alone, effectively boosting Apple’s (AAPL) stock by about 10 cents per share to start off the calendar year, 2016.
Daryanani further noted that his predictions are based on Apple’s gross margins being within the 33 percent range, which would actually be rather low for Apple, historically speaking, seeing as how last quarter, for example, Apple’s gross margins across all product lines clocked in at 39.9 percent.
Seeing the iPad Pro as a major boost for Apple’s faltering iPad business, Daryanani estimates that the $2.4 billion in revenue will further represent about half of the total iPad revenue for Apple’s March quarter.
RBC Capital has maintained a target price of $150 for shares of AAPL stock, and has given the silicon valley tech giant an “outperform” rating for the imminent future.