Printed from http://www.electronista.com

Apple surprises with supply chain cuts for iPad 2

updated 07:40 am EDT, Mon September 26, 2011

Apple ramping down iPad 2 production by 25%

Apple is reportedly cutting orders to vendors in its supply chain for the iPad 2 by 25 percent, according to Bloomberg. JPMorgan analysts in Hong Kong claim that it is the first time that they have seen cuts of this order. However, news of the cut is not expected to impact on projected sales for what is one of Apple's halo products.

The purported reduction in orders could result in production of the iPad 2 for Foxconn to slip to 13 million for the fourth quarter, down from 17 million that it delivered in the third quarter. Despite the development, JPMorgan US analyst Mark Moskowitz has maintained his estimation of iPad 2 shipments for the fourth quarter 10.9 million to 12 million units.

Although some rumors had Apple shipping an iPad 3 in the fourth quarter this year in response to the perceived threat of Android 3.0 (Honeycomb) tablets, the failure of competitors from Samsung, Acer, ASUS and others to make a significant dent in the tablet market dominated by Apple saw those rumors die out.

It is possible, however, that Apple could be ensuring that it does not have an oversupply of iPad 2s when it launches an iPad 3 as expected in early 2012.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. Ryszard

    Fresh-Faced Recruit

    Joined: Apr 2010

    +2

    Better explanation...

    How about Apple reduced production in the Middle East because the Brazilian Foxcon factory will make-up the difference? It was reported that it started production recently and that it was set-up to produce the iPad 2, not any forthcoming models. There were no reports, whatsoever, that sales of iPad 2 are dropping.

  1. facebook_John

    Via Facebook

    Joined: Sep 2011

    0

    Change of factories not cuts

    According to a new report, Apple has moved some production to Brazil. There are no cuts in production at all.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News