(UPDATE) iPad Lives Up to Hype on its First Day (AAPL)

The long-awaited launch of Apple Inc.'s (NASDAQ: AAPL) iPad came Saturday to long lines at company retail stores across the country, but the crowds quickly dissipated and question linger about the long-term demand for the tablet computer from the everyday consumer as few locations sold out of the new product.

Early adopters of potentially revolutionary technology tend to be the more affluent and tech-savy consumers that simply must have the latest trend, but Apple is counting on the iPad to replace stable devices like laptops and netbooks for a portion of the general population.

The longer than expected lines and plentiful supply of the device have led to some differing views on the current and future success of the iPad.

Piper Jaffray analyst Gene Munster said that the long lines and high expectations for presales led to him more than doubling his first-day sales estimate to 600,000 to 700,000 units, while he also lifted his forecast for sales of the device by the end of the year to 5.5 million from 2.8 million.

"The only true benchmark for judging the launch of the iPad will be the time it takes Apple to sell one million units," Munster said. "While it is difficult to estimate launch day sales with limited data, we believe Apple will sell one million iPads in 20 to 30 days."

Piper Jaffray has reiterated its Overweight rating on Apple, while increasing its price target to $289 from $284.

Kaufman Bros. analysts are less optimistic for Apple’s launch weekend, as they estimate the new tablet sold between 250,000 to 350,000 units. The firm believes the "iPad has potential to become a big hit but will depend on development of iPad-specific apps taking advantage of larger screen and much faster processor."

Kaufman maintained its buy rating on Apple, while also increasing its price target to $295 from $253.
The version of the iPad launched on Saturday only offers the consumer short-range Wi-Fi connectivity which carries a price tag range of $499 to $699. A 3G capable model of the device is expected to arrive on AT&T Inc. (NYSE: T) networks later this month starting at $629, with an unlimited data plan of $30 per month.

Update: Apple announced that it sold over 300,000 iPads in the US as of midnight Saturday, April 3.

The company added that users had downloaded over one million apps from Apple's App Store and more than 250,000 e-books from its iBookstore during the first day of the iPad's release.

"It feels great to have the iPad launched into the world -- it's going to be a game changer," said Steve Jobs, Apple's CEO. "iPad users, on average, downloaded more than three apps and close to one book within hours of unpacking their new iPad."

Shares of Apple are up $2.19 to $238.17 in premarket trade on Monday.

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