Reuters: iPad screen orders way down as consumers switch to iPad mini

Apple has been in a very weird position lately, being one of the most valuable companies in the world and a leader in the technology industry but at the same time losing important mindshare with its consumers and losing confidence with its investors.

A few days ago Apple stock went below $500 for the first time due to reports of cancelled part orders for its iPhone 5 device. This seemed to point at not only a seasonal decline in sales but a rather larger, more alarming trend where consumers are slowly starting to move away from the Cupertino company.

Now Reuters is reporting that the same thing is happening with 9.7-inch iPad screens, with sources saying that there has been a gradual slowdown in production at all of Apple’s major suppliers.

The biggest of these slowdowns seems to be happening at Sharp Corp in Japan, where production levels have been reduced to their minimum level that still keep the line running. The other two manufacturers Samsung and LG, have also seen a dip in demand. However, these can be attributed to Apple distancing themselves from Samsung, one of their biggest rivals, as well as weak season demand which was expected for the first quarter of 2013.

This slowdown doesn’t mean that Apple is really in trouble, at least not yet. One of the main reasons behind it is that Apple’s smaller iPad Mini is cannibalizing their own market. According to Macquarie Research the iPad shipments in this quarter will decrease by nearly 40% compared to last year’s Q4, but Apple’s total tablet shipments will show a much smaller decrease due to strong iPad mini sales.

Another reason why this is happening might be that Apple is simply going through its inventory and preparing for a new device launch. However with the refresh of the iPad line barely a few months ago this seems to be somewhat unlikely unless Apple’s new regular iPad has had a much weaker demand than expected.

As of now Apple stock is again below $500 hovering at $499. However things might change, for better or worse, next week when Apple discloses its financial results for Q1 of 2013.

Source: Reuters | Image via Techspot

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Hum said,
Yeah, the Front Page reporters should recognize those who posted News first, in BPN.

Major Neowin flaw.

Don't worry, Hum. The users recognize.

Less arrogance and less relentless hype would go a loooooong way. I think we are over the tipping point where thousands of 'articles' about the most inconsequential rumors published on some no name blog go over well with consumers.

I'm not surprised, the iPad Mini is a beautiful device, it's absolutely stunning, has great performance.. the demand is going to blow up when it arrives with a retina display.

lol @ Dushmany, "nexus beats ipad" .. in what exactly? a faster processor? thats no big deal, it's all about software optimisation, apps, bigger display, eco system, gpu blows nexus so the mini is better for games, should i go on? the mini rocks and is the best smaller tablet on the market. fact.

When iPad Mini will have Retina display I definitelly buy one. Since then... no way.
Most probably the iPad problem is the launch of the last generation of iPad's only few months after the new iPad instead of usual 1 year.
Faster devices line updates, is not so good for sales.

I think this is the result of the current iPad market Plateauing and the iPad4 not selling as much since it was released out of cycle. I've bought ever version of the iPad except the 4 since it was released out of cycle and I didn't have proper time to put away for one. There have also been a TON of iPads sold and it might be reaching a stability level until 2-3 years when people upgrade. People could be switching to Mini's due to the diff form factor as well since they already have an iPad (I bought a Nexus 7 since I was sick of waiting). Its not necessarily a death toll for anything just the way things are eventually going to pan out for a while i.e. the PC market.

It was a mistake in Apple's part to release it along side with the mini. The consumers were focus on the mini, plus as someone suggested here, iPad 4 was released out of cycle - the consumer didn't bit because the release was too close from the previous version even though the latest one had an upgraded specifications.

If anyone actually reads the Reuters report (which I doubt anyone does) 9to5mac points out that Apple is managing their inventory and that a gradual slowdown in production is normal after the holiday season. Also it is pointed out that Samsung and LG have reported no slowdown in their production. This is nothing but another analyst with a bogus headline. My bet is that another analyst from another media outlet will publish an article by mid-day that contradicts this.

cycle or not... ipad was killed by the ipad mini... most people who buy apple product will take the mini now... if the original size the only one out there they will buy it because its apple. but now they compete with their self by going mini... 70 percent will decide to get the mini cause its cheaper compared to the ipad

What baffles me is everyone is buying the iPad mini (no retina -- made up BS name display) knowing they will release it in a couple of months with it. This is what Apple does best, they know they have nothing else to bring to the table other than form factor. Pull back certain features only to incrementally release them and call them different versions to drive sales. People fall for it everytime. Apples road map (next 2-3 years): iPad Mini 2 (with Retina Display), "The" iPad Mini (faster GPU). "The" iPad Mini 2, (slight hardware upgrades, 16:10 ratio to include additional row of icons).

DBrandUSA said,
What baffles me is everyone is buying the iPad mini (no retina -- made up BS name display) knowing they will release it in a couple of months with it. This is what Apple does best, they know they have nothing else to bring to the table other than form factor. Pull back certain features only to incrementally release them and call them different versions to drive sales. People fall for it everytime. Apples road map (next 2-3 years): iPad Mini 2 (with Retina Display), "The" iPad Mini (faster GPU). "The" iPad Mini 2, (slight hardware upgrades, 16:10 ratio to include additional row of icons).
EXACTLY!!!! Very well said. The iSheeple will stand in line like a bunch of mindless Zombies each and every time. They did ti with iPhone and the iPad. Apple is using the "creatures of habit" scheme and the iSheep keep falling right in line like a bunch or pre-programmed predictable zombies.

The mini with retina would be great but i want an ipad that is thinner but with edges like the iphone. Keeping about 10 hours of battery life.

And I want a car that looks like a corvette, that has the reliability of a civic, and gets 70 mpg. But the technology for that isn't there yet. And I don't think the technology is there for your idea of an ipad yet either. But we can dream

It is there. Where is it not there yet? each revision it gets thinner and keeps same 10 hour battery life. And the edges is easy it just design and would help add more battery while still keeping it thinner. I did not say as thin as the mini but thinner than it is now.

BlendedFrog said,
And I want a car that looks like a corvette, that has the reliability of a civic, and gets 70 mpg. But the technology for that isn't there yet. And I don't think the technology is there for your idea of an ipad yet either. But we can dream
It is their. They took an iPad an made it smaller. You think they couldnt do beveled edges? You think it couldnt have been as thin? It was a rushed product to get in on that 7" money before Google prevent them from entering the market. Using 2 year old hardware that was on the shelf? The frikkin iPad 2 is thinner than the iPad 3...you know that...right?

yes the ipad3 is thicker but by the time 5 comes out. better processor will be available to make it skinnier again. the 4th gen added more speed, so 5th gen should be able to make it thinner.

Yes the mini is a rushed product but selling pretty good now, enough to start canibalizing ipad sales.

This is exactly why Steve Jobs hated the idea of a iPad mini, he knew that it would cause competition between products within Apple's range, which of course was one of the things that nearly put apple out of business in the 90's.

REM2000 said,
This is exactly why Steve Jobs hated the idea of a iPad mini, he knew that it would cause competition between products within Apple's range, which of course was one of the things that nearly put apple out of business in the 90's.

DUH!!! You think the iPod Touch didnt cause competition with the iPhone. The only reason the iPhone keeps outselling the iPod Touch is because the iPhone gets the better hardware of the 2 even tho they basically are identical, other than the calling hardware. That is why when the 4S was release, Apple didnt make a Touch based on the same hardware, becat first touch sales were eating into iPhone sales. Why sign a contract for a phone if you can get a Touch with identical hardware for less and no contract?

The latest TOuch to me is just ugly, much like its sibling. But again the hardware is slightly lesser to make the iPhone more appealing. Apple doesnt care if a device cannibalizes another. They still get the money.

Now all these idiots who ran out and bought this one will sell them to get the Retina Display version on the next model, and do it again for the A6X version afterwards.

About 50% of the people that come in to buy an iPad have aimed at the iPad mini. The only reason they don't often leave with one is simply because we can't keep up with the demand.

A much-much lighter iPad or a retina iPad mini would be nice. Right now, unless you want iOS, I think Android has the nicest tablet hardware.

This shows that Steve Jobs was wrong...YET AGAIN. He claimed 10" was the best form factor. Fact is, the only reason people bought the 10" iPad is because it was the best option in its size. But that doesnt mean people actually wanted bigger, it just means they had no other choice and with Apple they didnt. This is why when Amazon and Google made 7" tablets they were selling like hotcakes, because 7" is the preferred size and that is why Apple rushed an used 2ndhand parts to get in on some of that money.

Also we can expect that the next Mini will have Retina Display, will surely at least have the A6X and no one will want the 9.7" one anymore. Then the model after that will have double the resolution liek the 3 was and than all the iDiots will run and buy that. Apple is just milking the farm.

Once the iPad 3 drops some more, I'll get another. But gosh it runs so crappy with iOS 6.

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