Apple Cuts 4th Quarter iPad Orders by 25%?

Discussion in 'iOS Blog Discussion' started by MacRumors, Sep 26, 2011.

  1. MacRumors macrumors bot


    Apr 12, 2001

    JP Morgan analysts claim that Apple is cutting orders from iPad component suppliers by 25% for the upcoming quarter.
    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.


    Apple sold 9.25 million iPads during the 2nd calendar quarter, and only caught up with demand in August, 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 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 who is said to be introducing their own Android-based tablet this week.

    Update: Business Insider speculates that the drop in orders could have to do with Apple moving some iPad production from China to Brazil beginning later this year. What that theory fails to address, however, is the fact that the Brazilian production is still being performed by Foxconn/Hon Hai and will almost certainly utilize the same component suppliers used in Chinese-produced iPads, meaning that the shift should have little effect on orders from those supply chain partners.

    Article Link: Apple Cuts 4th Quarter iPad Orders by 25%?
  2. iRobby macrumors 6502a


    Mar 22, 2011
    Fort Myers, FL USA
    No! Please say it's not so. Apple isn't conceding defeat to Amazon Tablet before it is released.
  3. OllyW Moderator


    Staff Member

    Oct 11, 2005
    The Black Country, England
    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.
  4. JG271 macrumors 6502a


    Dec 17, 2007
    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.
  5. thewitt macrumors 68020


    Sep 13, 2011
    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...

  6. MikeDTyke macrumors 6502a

    Sep 7, 2005
    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
  7. ArtOfWarfare macrumors 604


    Nov 26, 2007
    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.
  8. carmenodie macrumors 6502a

    Apr 25, 2008
    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!
  9. mdriftmeyer macrumors 68030


    Feb 2, 2004
    Pacific Northwest
    JP Morgan analyst should be fired

    This from Reuters:

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

    Jan 26, 2010
    When are you people gonna learn

    "Analysts" and pundits are constantly trying to manipulate the market. Do you really think Apple would be this far off?
  11. qtaran111 macrumors member

    Jun 15, 2010
  12. *LTD* macrumors G4


    Feb 5, 2009
    Talk about massively misreading the situation.
  13. Spartan1337 macrumors newbie

    Sep 26, 2011
    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.
  14. toddybody Guest


    May 13, 2010
    On Mars, thinking about my father...
    Enlighten us all, please.
  15. Tiger8 macrumors 68020

    May 23, 2011

    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.
  16. Sardonick007 macrumors regular


    May 18, 2011

    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.
  17. rdowns macrumors Penryn


    Jul 11, 2003
  18. MacNut macrumors Core


    Jan 4, 2002
    Ya because China is known for their quality knock of products.:p
  19. angrynstupid macrumors regular

    Jan 26, 2010
    What'd I Tell Ya

    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!
  20. vrDrew macrumors 65816


    Jan 31, 2010
    Midlife, Midwest
    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.
  21. aristokrat macrumors regular

    Apr 15, 2007
    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?
  22. DesignerOnMac, Sep 26, 2011
    Last edited: Sep 26, 2011

    DesignerOnMac macrumors 6502a


    Jul 23, 2007
    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.
  23. accessoriesguy macrumors 6502a

    Jul 8, 2011
    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!

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