Estimation question

How many iPads are sold in the USA every year?

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What this question tests

Whether the candidate can build a market sizing estimate using population, adoption rate, and replacement cycle assumptions.

How to approach it

  1. State scope: assume US iPad sales specifically, not all tablets, and confirm this with the interviewer.
  2. Estimate the US population, roughly 335 million, and assume roughly 45 percent own a tablet, giving roughly 150 million tablet owners.
  3. Assume iPad holds roughly 30 percent share of the US tablet market, giving roughly 45 million iPad owners.
  4. Assume an average replacement cycle of 4 to 5 years, meaning roughly 20 to 25 percent of owners replace their device annually.
  5. Multiply: 45 million times 22 percent gives roughly 10 million iPads sold per year, plus new first-time buyers, landing in an 8 to 12 million range.

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