Sam Oliver
Gene Munster with Piper Jaffray said Monday that he too has heard from Apple's supply chain that iPad 2 orders for the rest of 2011 have been reduced. However, he doesn't necessarily see that as an indication that Apple is experiencing reduced demand for its touchscreen tablet.
"While we have heard chatter of supply chain order reductions, the absolute sell-in figures for (the second half of calendar year 2011) likely remain well above our estimates," he wrote in a note to investors.
"We also note that previous calls based on sell-in or supply chain data have, for the most part, proven to have very little correlation with Apple's results vs. consensus dating back to early iPod shipments (2003)."
The analyst believes that Apple deliberately has multiple suppliers and manufacturing partners, which makes it difficult for industry watchers to draw conclusions based on one data point. He noted that Apple plans to assemble iPad units in Brazil by the end of this year, a transition that could explain reduced orders from the Far East.
Munster has maintained his forecast of 10 million iPad units sold in the September quarter, increasing to 12 million in the December quarter. Both would be new highs for Apple, besting the company's previous record of 9.25 million units.
Munster's details from his own supply chain sources come on the heels of a separate claim from JP Morgan Chase & Co., which indicated that Apple has allegedly reduced iPad 2 orders by 25 percent. The cut was said to have been enacted in the last two weeks, and would be the first reduction in orders that supply chain sources have seen for Apple's touchscreen tablet.
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36 Comments
I'd agree with Munster on this one. I have no doubt iPad2 sales (or iPad3) will continue to outpace predictions whatever these reports some think they have dug up on manufacturing numbers to prove otherwise.
Guessed it was Munster before even opened article.
Would be interesting if the whole thing ends up being about Brazil.
I wonder if the Brazil facility will produce only for Brazil or if it will produce for all of South America, or perhaps even for both NA and SA....
Would be interesting if the whole thing ends up being about Brazil.
I wonder if the Brazil facility will produce only for Brazil or if it will produce for all of South America, or perhaps even for both NA and SA....
I've read that the combination of Brazil's high import taxes, advantageous export taxes to other Latin American countries, and the fact that Brazil represents fully half the Latin American market all make Brazilian manufacturing a natural to serve the SA market. Not sure about NA.
it might very well be to compensate for the start of production of the Foxxcon plant in Brazil . Again today a big bank feeds a scary outlook on a company, stock is sold heavily before bouncing back mid day. Volatility is the single most efficient factor for market makers to make money. Bottom line (in case you're a slow learner): NEVER trust a banker.