Sam Oliver
In a report issues to investors this week, JPMorgan Chase & Co. indicated that Apple has cut fourth-quarter iPad orders from its overseas supply chain by 25 percent, according to Bloomberg. Sources in the supply chain said the cut was enacted in the last two weeks, and it is the first such one from Apple they have ever seen.
Apple was originally expected to order 17 million units in the fourth quarter of calendar 2011, but that number could now drop to 13 million units, the report said. It was suggested that reduced orders could reflect weakening demand in Europe.
The claims from JPMorgan come as a separate report from DigiTimes also made mention of a "slowdown in global demand" prompting Apple to follow a market shift toward lower prices. It cited "market rumors" in claiming Apple plans to cut the price of the iPad 2.
Such changes would come as a surprise, as iPad sales for Apple have continued to increase, reaching a record 9.25 million units last quarter. JPMorgan analyst Mark Moskowitz still expects Apple to sell 10.9 million iPad units this quarter, and 12 million during the holiday quarter.
Moskowitz said in a note to investors earlier this month that Apple already has prototypes for a third-generation iPad in its supply chain. But he doesn't expect Apple to introduce such a model before 2012, as competitors have struggled to gain traction against the iPad.
Research from IDC has found that the iPad 2 actually took away market share from Android tablets shipped in the second quarter of calendar 2011. Apple represented 68.3 percent of the market, growing its share as Android dropped to 26.8 percent of shipped hardware.
Moskowitz also said last week that he sees Apple releasing a new low-cost iPhone, dubbed an iPhone "4-plus," this year to target midrange smartphone buyers, particularly in emerging markets like China. That aligns with the "market rumors" cited by DigiTimes on Monday, which suggested that a lower-priced iPad 2 would be joined by a new, cheaper entry-level iPhone from Apple.
Malcolm Owen
William Gallagher
Christine McKee
Bon Adamson
Wesley Hilliard
104 Comments
There is something deeply fishy with these reports.
A Shift from 17 to 13 million is a huge alteration -- and not the kind of screw-up we've ever seen from Tim Cook. I can only imagine two possible explanations:
1. the report is complete BS spread by someone selling AAPL short.
2. they actually will update the iPad this quarter... something I highly doubt (they rarely deviate from their product release cycle that much, and would gain little as the iPad 2 is still selling well).
There is something deeply fishy with these reports.
A Shift from 17 to 13 million is a huge alteration -- and not the kind of screw-up we've ever seen from Tim Cook. I can only imagine two possible explanations:
1. the report is complete BS spread by someone selling AAPL short.
2. they actually will update the iPad this quarter... something I highly doubt (they rarely deviate from their product release cycle that much, and would gain little as the iPad 2 is still selling well).
I concur with both your assessments.
I'll try to find the related mention from a few days ago where some other (financial?) group said there were some signs that overall tablet demand may be falling. Way too soon to say so definitively IMO, or to determine why if it's true. Perhaps this is the "3rd quarter warning" that Apple mentioned in it's last financial call?
There is something deeply fishy with these reports.
A Shift from 17 to 13 million is a huge alteration -- and not the kind of screw-up we've ever seen from Tim Cook. I can only imagine two possible explanations:
1. the report is complete BS spread by someone selling AAPL short.
2. they actually will update the iPad this quarter... something I highly doubt (they rarely deviate from their product release cycle that much, and would gain little as the iPad 2 is still selling well).
Remember this from a few years ago-
http://www.businessinsider.com/2008/...-analyst-aapl-
"Apple has cut its calendar Q4 iPhone production plans significantly more than originally estimated, according to a report by Friedman Billings Ramsey analyst Craig Berger."
Apple released the iPhone 4 soon after. Apple is getting ready to into the iPad 3.
I agree, the report sounds a little fishy.... However, I have noticed that supply is definitely up on the iPad2. Most stores around here have a good supply of all models. That has not been the case until recently...
Of course, I bought the wife a Verizon 3G 64Gb model last weekend (22nd anniversary)... ( Worked better than jewelry... )