Apple iPad sales predicted to reach 20 million in 2011

Apple will have sold 12.5 million iPads by the end of this year, and shipments will reach 20 million in 2011 as tablets flood the market, according to new predictions from analyst firm Canalys.

IPad sales reached three million in its first 80 days, Apple said in June, and analysts predict that it could dominate the market well into 2012.

Apple has an extremely loyal customer base, and its products generate a lot of media attention on release, but the interest has died down a little now, explained Tim Coulling, an analyst at Canalys.

"The shipping time for an iPad from the Apple Store has decreased recently from weeks to days," he said. "This could be because Apple has increased its supply, or that demand has levelled off."

In contrast, UBS analyst Maynard Um increased his forecast for iPad sales to 28 million in 2011.

Coulling told V3.co.uk that 28 million was "a bit high", especially as a number of manufacturers are expected to launch rival devices.

Samsung's Galaxy Tab is one of the first high-profile tablets to muscle into the market, but Coulling expressed concerns at its high price. At £650, it could make the entry level £429 iPad look reasonable.

US sales of the iPhone 4, meanwhile, are reported to be suffering by as much as 20 per cent because of continuing concerns about reception problems, according to a survey by analyst firm Piper Jaffray.

Around two-thirds of 258 respondents are aware of the reception issue, and 20 per cent said that it had affected their decision to buy the phone.

Piper Jaffray analyst Gene Munster even suggested that Apple's share price may fall by as much as 11 per cent by the end of this quarter. However, he also noted that 11 million iPhones are likely to have been sold worldwide in the quarter, and that the US will account for 4.4 million of those sales.

The iPhone 4 reception issues have generated much bad publicity for Apple since the launch. Chief executive Steve Jobs was forced to hold an emergency press conference in July to offer iPhone 4 users a 30-day no quibble refund or a free 'bumper'.