iPad has been a wild success since its launch in 2010, and the iPad 2 was a
lucrative follow-up in 2011. Apple sold 1 million iPad's in less than a month after its release,
and managed to sell 1 million iPad 2's during launch weekend alone. While many
competitors have stepped to the plate, such as BlackBerry's PlayBook,
Motorola's Xoom and Samsung's Galaxy Tab, Apple has managed to hold the No. 1
spot in the tablet world.
Now, Bloomberg reports
that Apple is reducing iPad orders to vendors, which could mean slower sales
for associated companies like Hon Hai Precision Industry Co. Apple has not
confirmed the cut in orders to vendors.
Over the past two weeks, many vendors noted that Apple cut fourth-quarter iPad
orders by 25 percent. JPMorgan Chase & Co. analysts wrote a report on
September 25 that showed that vendors such as Hon Hai could experience a drop
from 17 million units in the third quarter to only 13 million units in the fourth
According to Wanli Wang, an industry analyst at RBS Asia Ltd., the reason for
the reduced orders from Apple may be economic conditions leading to decreased
demand in Europe as well as Apple's attempt to operate with reduced inventory.
Apple currently claims 73 percent of tablet sales this year with its iPad. It
has worked its fingers to the bone to ban the sales of Samsung's Galaxy Tab 10.1 throughout Europe as
well as Australia this year, and
quote: : In a rare eruption of internecine conflict, J.P. Morgan's Mark Moskowitz has formally disavowed his Asian colleague's report, according to Bloomberg. That report "has the equity markets worried about Apple," Moskowitz wrote. It "focuses on how Hon Hai could be impacted by potential iPad sell-in order cuts. This alert is not the view of the U.S. IT hardware team."
quote: the iPad's sales are significantly slowing down
quote: even with those purportedly reduced shipments, analysts aren't ready to say that Apple will sell fewer iPads in the fourth quarter. According to Bloomberg, JP Morgan analyst Mark Moskowitz will maintain estimates that Apple will ship up to 12 million iPad units in that quarter
quote: LOL at logic.It is obvious that, if you say is true which is really questionable, that Apple sells each iPad, cutting down 25%!!! (this is a quarter of their demand), the iPad's sales are significantly slowing down.iPad 3 is not coming out until spring 2012, holiday season is coming up.. everyone is ramping up production for the holiday.Apple dropping their orders by 25% means shows the OPPOSITE of what you are claiming. This means that Apple is losing demand very clearly.
quote: Gene Munster with Piper Jaffray said Monday that he too has heard from Apple's supply chain that iPad 2 orders for the rest of 2011 have been reduced. However, he doesn't necessarily see that as an indication that Apple is experiencing reduced demand for its touchscreen tablet."While we have heard chatter of supply chain order reductions, the absolute sell-in figures for (the second half of calendar year 2011) likely remain well above our estimates," he wrote in a note to investors."We also note that previous calls based on sell-in or supply chain data have, for the most part, proven to have very little correlation with Apple's results vs. consensus dating back to early iPod shipments (2003)."The analyst believes that Apple deliberately has multiple suppliers and manufacturing partners, which makes it difficult for industry watchers to draw conclusions based on one data point. He noted that Apple plans to assemble iPad units in Brazil by the end of this year, a transition that could explain reduced orders from the Far East.Munster has maintained his forecast of 10 million iPad units sold in the September quarter, increasing to 12 million in the December quarter. Both would be new highs for Apple, besting the company's previous record of 9.25 million units
quote: iPad 3 is not coming out until spring 2012,