updated 11:54 am EDT, Thu October 4, 2012
Production yields proving smaller than hoped for
Suppliers for the iPad mini are finding the specifications for tablet difficult, and consequentially production yields have been "frustrating," according to Topeka Capital Markets' Brian White. The analyst originally expected the tablet to ship in September, but blames the delay on yields, and suggests that the issue could limit the "full sales potential" of the product. Nevertheless, the supply chain is said to think it will ship an acceptable number units for a launch in the course of the next month.
White argues that the tablet will cost between $250 and $300, and sell 5 to 7 million units by the end of the current quarter.
Recent reports have indicated that the new iPad model is already in production, and should be announced mid-month with a launch happening shortly thereafter. To make a meaningful dent in holiday sales it would have to out before Black Friday toward the end of November, traditionally the busiest shopping day of the year.
Apple has had similar production problems with the iPhone 5. Only now are yields of in-cell touchscreens said to be turning out well, and the phone as a whole is thought to be complex to build, limiting how many can be churned out.