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MacRumors
Sep 26, 2011, 03:15 AM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2011/09/26/apple-cuts-4th-quarter-ipad-orders-by-25/)


JP Morgan analysts (http://www.bloomberg.com/news/2011-09-26/apple-cuts-ipad-supply-chain-orders-jpmorgan.html) claim that Apple is cutting orders from iPad component suppliers by 25% for the upcoming quarter.Several supply-chain vendors indicated in the past two weeks that Apple, the world's biggest company by market value, lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan's electronic manufacturing services team in Hong Kong said they have ever seen. The report did not list the affected companies.The cut could represent a drop from 17 million units produced in the third quarter to 13 million units in the 4th quarter. The reason for the drop in orders is not explained in the report.

http://images.macrumors.com/article-new/2011/05/ipad_2_oblique.jpg


Apple sold (http://www.macrumors.com/2011/07/19/apple-reports-record-breaking-q3-2011/) 9.25 million iPads during the 2nd calendar quarter, and only caught up with demand in August (http://www.macrumors.com/2011/08/02/apples-ipad-2-shipping-estimates-drop-to-within-24-hours-in-u-s-and-canada/), so it may be that Apple overestimated the peak demand. Sales numbers for the current quarter have not yet been reported.

There had originally been some speculation that the iPad 3 might launch this fall, but multiple reports have said the iPad 3 will not launch until 2012. Meanwhile, given the poor showing amongst iPad competitors, most expect (http://www.front.macrumors.com/2011/09/22/ipad-set-for-free-run-through-holiday-tablet-shopping-season/) that the iPad 2 is set to have a "free run" through the 2011 holiday period. The only other major competitor to be launched in this quarter appears to be Amazon (http://www.macrumors.com/2011/09/23/amazon-media-event-set-for-september-28th-tablet-announcement-expected/) who is said to be introducing their own Android-based tablet this week.

Article Link: Apple Cuts 4th Quarter iPad Orders by 25%? (http://www.macrumors.com/2011/09/26/apple-cuts-4th-quarter-ipad-orders-by-25/)



iRobby
Sep 26, 2011, 03:22 AM
No! Please say it's not so. Apple isn't conceding defeat to Amazon Tablet before it is released.

OllyW
Sep 26, 2011, 03:23 AM
It looks like the production has finally caught up with the demand.

My daughter bought one a couple of weeks ago and said all the local electrical stores had them in stock and most were offering deals on accessories to get the sale.

JG271
Sep 26, 2011, 03:47 AM
It looks like the production has finally caught up with the demand.



This is true, stock is now very very good compared to just a few months ago; but most people who wanted one now have one.

Perhaps they were over-producing them a few months ago for Christmas etc.

thewitt
Sep 26, 2011, 03:48 AM
No! Please say it's not so. Apple isn't conceding defeat to Amazon Tablet before it is released.

Hardly. If they cut production by 25% they will still be selling 150,000 iPads each and every day...

Two weeks production to equal Amazons projected, say again projected, sales for the quarter...

-t

MikeDTyke
Sep 26, 2011, 03:48 AM
Like most, i thought there was no chance of an iPad3 this year, but that's a pretty significant drop in production output. :rolleyes:

iPad Pro perhaps. I'd pay dearly for a retina class display and a stylus. Don't care what the stylus haters say. :D

ArtOfWarfare
Sep 26, 2011, 03:57 AM
I'd say this warrants first page status...

Seriously, if weekly stock reports get first page, I think the first time we've heard of Apple cutting down on iPad requests in awhile is first page worthy.

carmenodie
Sep 26, 2011, 05:07 AM
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

Look eventually those that want an iPad 2 will get one. Demand though will eventually drop until Apple can entice their consumers with another device. That's why I can't stand the tech industry. You always have to come up with something new or you're dead.
And Apple has gotten itself set up where if they can't WOW then they will take a beating by Wall Street. I can imagine the pressure Apple employees are under to make up new stuff.
Screw that!

mdriftmeyer
Sep 26, 2011, 05:36 AM
This from Reuters:

http://www.reuters.com/article/2011/09/26/markets-taiwan-stocks-idUST8E7JM02Q20110926


TAIPEI, Sept 26 (Reuters) - Taiwan stocks ended 2.4 percent
lower on Monday, with Apple Inc plays as well as
smartphone maker HTC tumbling.
The main TAIEX index fell 169.10 points to 6,877.12,
after opening down 0.28 percent.
Electronics shares shed 2.5 percent, with Apple
supplier and touch panel maker TPK Holding down 6.67
percent, and touchscreen panel maker Wintek and camera
module maker Largan Precision limit-down.
HTC shed 6.04 percent. Computer maker Quanta
however rebounded 3.95 percent, recovering from last week's
loss.
Financial shares were down 2.36 percent.
The Taiwan dollar weakened 0.59 percent to
T$30.566.


Guess what? Apple is shedding old contractors, not seeing a drop in demand.

angrynstupid
Sep 26, 2011, 05:49 AM
"Analysts" and pundits are constantly trying to manipulate the market. Do you really think Apple would be this far off?

qtaran111
Sep 26, 2011, 06:50 AM
This from Reuters:

http://www.reuters.com/article/2011/09/26/markets-taiwan-stocks-idUST8E7JM02Q20110926



Guess what? Apple is shedding old contractors, not seeing a drop in demand.

Good point. Also they are starting to produce iPads outside China

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/electronics/8772470/Brazil-opens-first-iPad-factory-outside-China.html

*LTD*
Sep 26, 2011, 06:50 AM
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

Look eventually those that want an iPad 2 will get one. Demand though will eventually drop until Apple can entice their consumers with another device. That's why I can't stand the tech industry. You always have to come up with something new or you're dead.
And Apple has gotten itself set up where if they can't WOW then they will take a beating by Wall Street. I can imagine the pressure Apple employees are under to make up new stuff.
Screw that!

Talk about massively misreading the situation.

Spartan1337
Sep 26, 2011, 08:56 AM
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

You think apple might be shifting production to the new iPhone about to be released. More people are willing to buy the next iPhone and it took apple long to catch up with demands when the ipad2 was released. Maybe they are preparing early for the high demand that could be generated for the next iPhone.

toddybody
Sep 26, 2011, 09:19 AM
Talk about massively misreading the situation.

Enlighten us all, please.

Tiger8
Sep 26, 2011, 09:44 AM
[SIZE=1]That's why I can't stand the tech industry. You always have to come up with something new or you're dead.


So what you're doing posting on the evil internets? Yes it's excessive, but this is how we move forward. If everyone thought like you, we'd still be debating the wheel.

Sardonick007
Sep 26, 2011, 10:02 AM
Production from China to Brazil? Well, I'd be very curious to see how that will affect quality. By "curious" of course, I mean this is the harbinger of the death of said quality.

rdowns
Sep 26, 2011, 10:13 AM
Production from China to Brazil? Well, I'd be very curious to see how that will affect quality. By "curious" of course, I mean this is the harbinger of the death of said quality.

Why?

MacNut
Sep 26, 2011, 10:23 AM
Why?Ya because China is known for their quality knock of products.:p

angrynstupid
Sep 26, 2011, 10:29 AM
"Analysts" and pundits are constantly trying to manipulate the market. Do you really think Apple would be this far off?

JP has backed away from their analyst's crazy talk. Course they had plenty of time to make their $$ off the idiots that believed them. They're so clever!

vrDrew
Sep 26, 2011, 10:58 AM
I'm quite sure that there is at least a grain of truth in this report.

But trying to read too much into such snippets of information is likely to end up as an exercise infrustration.

There are a number of possibilities: One of which is that Apple really is seeing a situation where current production levels are outstripping demand. Even for a very successful and profitable company, this is a bad thing. Too much inventory leads to downward pricing pressure, and the risk of forever tarnishing the iPad brand by resorting to deep discounting. Apple is too smart to let that happen. Much better to miss out on a few potential sales this quarter, than create the expectation that you'll buy an iPad 3 for hundreds less next year.

Its also possible that Apple is simply diversifying its supplier base. Relying too much on any one supplier carries with it risks. Not only a vulnerability to production interruption if a key vendor facility goes down (Tsunami, earthquake, etc.) - but also giving an outside supplier too much information as to quarterly sales trends.

Of the two, I'd say it seems more likely that sales volumes are softening slightly, in part due to continued economic weakness around the world. At this juncture nobody really knows what the total annual iPad market is - but its a safe bet to say that this is NOT being driven by competitive factors.

aristokrat
Sep 26, 2011, 11:12 AM
I'm quite sure that there is at least a grain of truth in this report.

But trying to read too much into such snippets of information is likely to end up as an exercise infrustration.

There are a number of possibilities: One of which is that Apple really is seeing a situation where current production levels are outstripping demand. Even for a very successful and profitable company, this is a bad thing. Too much inventory leads to downward pricing pressure, and the risk of forever tarnishing the iPad brand by resorting to deep discounting. Apple is too smart to let that happen. Much better to miss out on a few potential sales this quarter, than create the expectation that you'll buy an iPad 3 for hundreds less next year.

Its also possible that Apple is simply diversifying its supplier base. Relying too much on any one supplier carries with it risks. Not only a vulnerability to production interruption if a key vendor facility goes down (Tsunami, earthquake, etc.) - but also giving an outside supplier too much information as to quarterly sales trends.

Of the two, I'd say it seems more likely that sales volumes are softening slightly, in part due to continued economic weakness around the world. At this juncture nobody really knows what the total annual iPad market is - but its a safe bet to say that this is NOT being driven by competitive factors.

I'm quite sure this is professional and bald-faced market manipulation. How many millions do you think JP made today based off the action this report likely caused?

DesignerOnMac
Sep 26, 2011, 11:58 AM
Production from China to Brazil? Well, I'd be very curious to see how that will affect quality. By "curious" of course, I mean this is the harbinger of the death of said quality.

Brazilians have many modern production plants and are high tech ready. Their workforce is motivated and are good workers. A little research would help you with this.

Do you think Nissan and other car manufactures who opened auto plants in Mexico would expect poorer build quality? Nissan has a world class factory in Mexico as well as other manufactures.

Also add to this that Apple is not about to have any company in any country build an inferior product in my opinion.

accessoriesguy
Sep 27, 2011, 07:00 PM
Hardly. If they cut production by 25% they will still be selling 150,000 iPads each and every day...

Two weeks production to equal Amazons projected, say again projected, sales for the quarter...

-t

WOW 150,000 a day for a product at what half cycle? presumably 6 months (thats like a computer year in hardware terms). Very Impressive! Regardless!