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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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Hmm
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.
http://tech.fortune.cnn.com/2011/09/26/did-j-p-mor...
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."


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.




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