Analyst tips iPad to sell 28 million in 2011

Apple's tablet also chipping away at PC market
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Analyst USB Investment Research has predicted that sales of the iPad could reach as much as 28 million units next year thanks to rapid adoption in enterprise.

Writing in a note to investors, UBS analyst Mayard Um said that the 28 million target could be conservative and upped his target stock price for Apple to $350 from $340. Um also claimed that the success of the iPad will begin to affect sales of low-end notebooks, manufacturers such as Asus had earlier warned that netbook demand had weakened due to tablet demand.

“Sales of traditional notebooks appear to be feeling pressure from the iPad, causing a scramble by vendors to launch iPad-like tablets,” wrote Um. “We believe that a majority of this impact is occurring on the lower end of PC sales as the iPad is priced close enough to this range that it becomes attractive to consumers looking to make purchases within this segment.”

Um also drew attention to a recent Samsung statement that weakening PC sales had lead to an oversupply of DRAM which is expected to lead to lower DRAM pricing.

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