Estimation question
How many iPads are sold in the USA every year?
- Netflix
- Estimation
- Easy
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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
- State scope: assume US iPad sales specifically, not all tablets, and confirm this with the interviewer.
- Estimate the US population, roughly 335 million, and assume roughly 45 percent own a tablet, giving roughly 150 million tablet owners.
- Assume iPad holds roughly 30 percent share of the US tablet market, giving roughly 45 million iPad owners.
- Assume an average replacement cycle of 4 to 5 years, meaning roughly 20 to 25 percent of owners replace their device annually.
- 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.
What a strong answer includes
- Separates the installed base calculation from the annual replacement rate, avoiding the common error of estimating total ownership instead of annual sales.
- States iPad's specific market share within tablets rather than treating all tablet owners as iPad owners.
- Accounts for first-time buyers in addition to replacements, giving a more complete annual sales estimate.
Common mistakes
- Confusing total installed base with annual unit sales.
- Ignoring market share and assuming all tablet owners use an iPad.
Likely follow-up questions
- How would a new iPad model launch year change this estimate?
- How would you validate this against actual reported Apple sales data?
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More questions from Netflix
Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop