Print 17 comment(s) - last by name99.. on Sep 27 at 1:34 PM

Over the past two weeks, many vendors noted that Apple cut fourth-quarter iPad orders by 25 percent

Apple's 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 quarter.

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 succeeded.

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What's the time to market?
By MrTeal on 9/26/2011 12:20:47 PM , Rating: 5
As much as I'd love to pile on Apple here, this doesn't really seem that unexpected. If this is 4th quarter orders to vendors, would these iPads be on shelves in time for Christmas?

If not, the reduction in numbers could just be anticipating the slowdown after Christmas that always happens for these types of consumer electronics.

RE: What's the time to market?
By vol7ron on 9/26/2011 5:21:50 PM , Rating: 2
Maybe. The question, though, is if iPad3 will be part of the iPhone5 release (or soon thereafter). If not, vendors may just be waiting for the iPad3, since sales of dated hardware aren't so great.

The main thing about this release is that Apple may have successfully synced the release of the iPhone for the different carriers (Vzn, AT&T, and now Sprint). Whereas before there was a 4-5 months delay for Verizon.

By Ramtech on 9/26/2011 2:55:38 PM , Rating: 3
Personally i think tablets are fad this just confirms it

Translated to sensationalist article name:

We are entering post-tablet era

Makes sense.
By quiksilvr on 9/26/2011 12:21:15 PM , Rating: 2
I'm pretty sure on October 5th they'll be announcing the new iPhone and would want that product to be more readily available for the holiday season.

By name99 on 9/27/2011 1:34:56 PM , Rating: 2
Of course DailyTech would NOT post a followup indicating that this all seems a major screwup.
: 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."

Essentially (as has been noted by a few commenters below, some of whom have been modded down because DailyTech readers don't want to hear the truth)
- Apple is managing inventory for Q4
- even if the report WERE the whole story, Apple is still doing 130% better than last year (and any other competitor)
- but the report completely misses the point because it is about ASIA and ignores the Brazil plant.

Nothing to be alarmed about here, folks
By Commodus on 9/26/11, Rating: -1
RE: Nothing to be alarmed about here, folks
By Bozzified on 9/26/2011 1:23:45 PM , Rating: 2
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.

RE: Nothing to be alarmed about here, folks
By Mitch101 on 9/26/2011 1:30:17 PM , Rating: 2
Amazon tablet. is expected to reveal its entry in the volcanic tablet computer market on Wednesday, a $250 gizmo analysts say could be the first real threat to the iPad's market domination. And even Apple appears to be getting worried.

RE: Nothing to be alarmed about here, folks
By Bioniccrackmonk on 9/26/2011 9:55:02 PM , Rating: 5
This just in, Apple sues Amazon for selling a flat rectangular electronic device.

By Obujuwami on 9/27/2011 1:01:19 AM , Rating: 2
That, sir, deserves a 6!

By Phynaz on 9/26/2011 2:14:37 PM , Rating: 2
the iPad's sales are significantly slowing down

Except Mick "forgot" the rest of the article.

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

RE: Nothing to be alarmed about here, folks
By Tony Swash on 9/26/11, Rating: -1
By bennyg on 9/27/2011 4:31:52 AM , Rating: 1
I kind of agree with the sentiment but not the doomsday (fanboy) conclusions. Google is loaded, they will throw cash at whoever they need to in order to keep Android afloat, that's even assuming a 100% loss in that legal fight.

Re China, don't forget their proud history of faking it, I'd love to know how many cheap Android tabs there are floating around cf/ iPads.

Apple suing everyone is threatening their marketing strategy of Cool, and being behind the tech curve (iPhone 4S/5/whatever is outdated before it's out - if that's the editorial comment at launch it will die stone dead no matter how much pre-whipped hype there is) poses a huge risk in the other direction.

By name99 on 9/26/2011 5:03:33 PM , Rating: 2
iPad 3 is not coming out until spring 2012,

Really? Tim Cook personally told you? Otherwise please share how come you are so certain about a fact that the rest of us know nothing about.
(And don't just say "well iPad2 came out one year after iPad1" --- just in case you hadn't noticed, there was also a pattern to when iPhones came out, until there wasn't.)

By Scott66 on 9/26/2011 1:24:12 PM , Rating: 2
JPM forgot to take into account what the South American plant will be producing.

By Gondor on 9/26/2011 2:26:35 PM , Rating: 1
Commodus was slain (strangled) for posting bullshit on public forums.

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