Apple cuts iPad parts supply orders by 25 percent

Apple continues to sell lots of its iPad tablets but the company is now reportedly cutting the number of orders made to companies that make the parts for the device. Bloomberg reports that according to a new note from JPMorgan Chase, Apple has cut the fourth quarter numbers to several of the iPad's supply chain vendors by as much as 25 percent. The note did not give a reason for such a drastic reduction in the parts orders.

The report claims that such a cut could affect the unit sales of vendors such as Hon Hai Precision Industry. However, JPMorgan U.S. analyst Mark Moskowitz believes that even with this cut, he expects Apple to stick to its previous iPad units sales projections. The report currently has Apple shipping between 10.9 million to 12 million units of the iPad in the third and fourth quarters of 2011. Apple has yet to comment on this new report.

Apple sold 9.25 million units of the iPad worldwide in the second quarter of 2011 and has recently managed to catch up with demand for the tablet, eliminating long delays between sales and shipments. It's possible that Apple might be cutting down its vendor supply unit numbers in an effort to balance its supply and demand issues for the tablet. In any case, it's almost certain that the iPad will continue to sell well and also continue to outpace sales of rival tablet products such as the Motorola Xoom, the Samsung Galaxy Tab, the Blackberry Playbook and others.

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12 Comments

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downhillrider said,
The reason for this is the $200? Tablet from Amazon
Jeez replying from neowins mobile site sucks.

agree. probably also b/c they might have lost a few customers to the HP fire sale for $99 and $149 as well.

They're sales numbers are going down. Why else would a company cut production. They most certainly will increase production for the iPad 3. This reduction in production has nothing to do with coming out with a new model. Just guessing, most likely only about 1% of the world's population would own an iPad. Maybe even a bit less. Once that percentage is reached, the sale will go down.

jesseinsf said,
They're sales numbers are going down. Why else would a company cut production. They most certainly will increase production for the iPad 3. This reduction in production has nothing to do with coming out with a new model. Just guessing, most likely only about 1% of the world's population would own an iPad. Maybe even a bit less. Once that percentage is reached, the sale will go down.

Did you even read the article? Their sales numbers are definitely not going down...

Nothing particularly unusual there. For a long time, demand for the iPad was outstripping supply. Now that supply has caught up to (and possibly exceeded) demand, of course they are going to cut back on orders. In manufacturing , you NEVER want supply to exceed demand, because then you have to start paying storage costs for the items.

roadwarrior said,
Nothing particularly unusual there. For a long time, demand for the iPad was outstripping supply. Now that supply has caught up to (and possibly exceeded) demand, of course they are going to cut back on orders. In manufacturing , you NEVER want supply to exceed demand, because then you have to start paying storage costs for the items.

Citation? I have never found ipad 2 stock a problem in the UK

ZeroHour said,

Citation? I have never found ipad 2 stock a problem in the UK

when it came out you could only get one by pre-ordering for several weeks, this lasted for months

I bought mine in July. It was a struggle to find stock. The only reason I found some was due to the excellent site of http://www.ipad-stock.co.uk/

As you see from the site every model is in stock. For a long time the 16GB model (which I have) was always sold out.

ZeroHour said,

Citation? I have never found ipad 2 stock a problem in the UK


Third paragraph of the article above even states this. Have you not read all of the reports over the last 6-8 months about shipping delays on the iPad (mostly due to supply problems in Japan).