iPad 2 Smart Cover Could Generate Over $1 Billion in Revenue

Asymco analyst Horace Dediu predicts that the iPad 2 Smart Cover could generate over a $1 billion in revenue for Apple.

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.

I further estimate that with a very modest gross margin of 75% (average cost to produce of $12), the Smart Cover could contribute $777 million to Apple’s gross margins.


Dediu notes that it would be interesting to compare Apple's Smart Cover business with other competitors tablet businesses.

Read More [via BGR]