The Billion Dollar Smart Cover

I’m estimating that at least 60% of iPad buyers will get one. Based on an estimate of 36 million iPads sold in 2011 and an average price of $48 (70% polyurethane and 30% leather mix), the total revenue for Smart Covers will top $1 billion this year.

While waiting in line for the iPad 2, chit chat with the line neighbors eventually turned to Smart Covers. Quite a few people I was in line with wanted either the orange or green polyurethane Smart Cover, with only a few opting to get the (PRODUCT) RED leather model. I agree that more people will opt for the polyurethane covers at the entry price. Based on Horace Dediu’s prediction, Apple will possibly make more money selling Smart Covers alone than competitors selling tablets.