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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RE: Nothing to be alarmed about here, folks
By Tony Swash on 9/26/2011 2:19:01 PM , Rating: -1
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.

iPad demand is accelerating. Android tablets have all failed.

Here are my predictions.

Apple will sell more iPads this quarter than in any prior quarter. And more yet more the quarter after that. iPad sales in China will grow by a very large amount in the next year.

The Amazon tablet will not impact the iPad sales.

Android tablet sales will continue to be pitiful and each new Amazon tablet will be greeted as a possible iPad killer (remember the endless stream of iPod killers? Just like that).

Windows tablets will go no where in the market when they eventually arrive (someone should give Microsoft a dictionary with the words 'agile' and 'timely' underlined).

The iPhone 5 will be huge and will replace the iPhone 4 as the world's best selling handset.

Apples revenues and share price will continue to grow strongly.

Mac sales will continue to grow above market rates and Windows revenues will enter a long term decline.

Google will lose the Java copying case to Oracle who will then have Android's nuts in a vice.

Many techie conservatives and Apple-phobes will scratch their head and wonder how such things could happen, some will clutch at any silly vapourous news story that in any way could be construed as offering some sort of bad news in order to console themselves, if only temporarily. And understanding of the real dynamics of modern technology markets will elude many who think they have a special knowledge of such things.

This may be of interest but it may crush a few hopes.

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

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.

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