Apple Cuts 4th Quarter iPad Orders by 25%?

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

  1. macrumors bot

    MacRumors

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    [​IMG]


    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.

    [​IMG]

    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.

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

    iRobby

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    Fort Myers, FL USA
    #2
    No! Please say it's not so. Apple isn't conceding defeat to Amazon Tablet before it is released.
     
  3. Moderator

    OllyW

    Staff Member

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    #3
    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. macrumors 6502a

    JG271

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    #4
    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. macrumors 68000

    thewitt

    Joined:
    Sep 13, 2011
    #5
    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
     
  6. macrumors 6502a

    Joined:
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    Location:
    London
    #6
    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. macrumors 603

    ArtOfWarfare

    Joined:
    Nov 26, 2007
    #7
    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. macrumors 6502a

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    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. macrumors 68030

    mdriftmeyer

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    #9
    JP Morgan analyst should be fired

    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.
     
  10. macrumors regular

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    #10
    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. macrumors member

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  12. macrumors G4

    *LTD*

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    #12
    Talk about massively misreading the situation.
     
  13. macrumors newbie

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    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. Guest

    toddybody

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    #14
    Enlighten us all, please.
     
  15. macrumors 68020

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    #15


    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. macrumors regular

    Sardonick007

    Joined:
    May 18, 2011
    #16
    Ugh

    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. macrumors Penryn

    rdowns

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    #17
    Why?
     
  18. macrumors Core

    MacNut

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    #18
    Ya because China is known for their quality knock of products.:p
     
  19. macrumors regular

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    Michigan
    #19
    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. macrumors 65816

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    #20
    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. macrumors regular

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    #21
    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

    macrumors 6502a

    Joined:
    Jul 23, 2007
    #22
    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. macrumors 6502a

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    Jul 8, 2011
    #23
    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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