Apple's struggles to meet demand for the iPad 2 in the second quarter of fiscal 2011 were allegedly due to production problems and quality concerns with components, including LCD panels and speakers. That has prompted one research firm to cut its 2011 sales forecast by 4 million units, to 39.7 million.
Investment and research firms this week continue with their efforts to quantify the effect the recent Japanese earthquake will have on Apple and its capacity to manufacture its top-selling products, with the latest report identifying five core iPad 2 components likely sourced from the region.
Sales figures for 2010 show that Apple's iTunes Movie Store remained on top with 64.5 percent market share among competing Internet video services in the US. Also, more than $10 million worth of counterfeit iPhones, iPods and other items have been seized by the Los Angeles Port Police. Finally, officials say the physical permit allowing Apple CEO Steve Jobs to raze the controversial Jackling mansion will be issued soon.
Market analysts at iSuppli have revised their iPad sales forecasts for 2010 from 7.1 million units to 12.9 million, writing that "product demand [is] expected to vastly exceed available supply" and calling the new mobile computing appliance "the 'Tickle Me Elmo' of the 2010 holiday season."
If Apple wasn't saddled with iPhone 4 production constraints, launch sales could have gone as high as 2.5 million, one analyst believes. And if limited stock continues, it could open Apple up to a "competitive risk," according to a new analysis.