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."