Reports have been recieved from Apple that they are intending to cut orders for iPad components for the holiday quarter by 25%. This drop could lead to production of the iPad could fall from 17 million units to 13 million units in the third quarter, which is just before the important holiday season. Bloomberg was quoted:
Several supply-chain vendors indicated in the past two weeks that Apple, the world’s biggest company by market value, lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan’s electronic manufacturing services team in Hong Kong said they have ever seen. The report did not list the affected companies.
Mark Moskowitz, the JPMorgan analyst, claims that Apple will ship between 10.9 million to 12 million iPads during the third and fourth quarter. We remember that something like this happened previously this year when Apple reduced iPad 1 orders just before the iPad 2 was launched. We still don’t know if Apple’s intention is to reduce iPad 2 production before the iPad 3 is launched. However, the more logical explanation is thatFoxconn is reducting its iPad production in China as the Brazil plant is expected to open my December, as promised by the Brazilian Minister of Science and Technology, Aloizio Mercadante.
As always is expected with the new iPads, that they will have thiner and lighter batteries. TSMC, which allegedly won Apple’s chip business, will be at full capacity during iPad 3 build times.
Smashiphone wonders whether Apple will change its iPad 3 launch plans, now that the Amazon tablet has set a date for their production. It could be possible that Apple is reduction its production capacity to re-align its production lines to be prepared for the new production plans.
If we look at past numbers in the March quarter Apple produced 4.69 million iPads where in the June quarter Apple produced 9.25 million iPads. The lower than expected produced number during the March quarter was blamed on the launch of the iPad 2.