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iPad Supplies to Be Constrained at Launch Due to Production Issues? [Updated]


Digital Daily reports on a new research note from analyst Peter Misek at Canaccord Adams claiming that availability of Apple's iPad tablet device may be limited at its launch later this month, citing a "manufacturing bottleneck" at partner Hon Hai Precision that may result in initial distribution being limited to the U.S. or even delayed entirely.

"We have ... heard that the upcoming iPad launch may be somewhat limited as a manufacturing bottleneck has impacted production of Apple's newest device," Misek writes. "An unspecified production problem at the iPad's manufacturer, Hon Hai Precision, will likely limit the launch region to the US and the number of units available to roughly 300K in the month of March, far lower than the company's initial estimate of 1,000K units. The delay in production ramp will likely impact Apple's April unit estimate of 800K as well. It is also possible that, given the limited number of units available in March, the launch will be delayed for a month."

The source and veracity of Misek's information is unknown, although it is perhaps wise to note that Misek predicted that Apple's January media event that saw the introduction of the iPad would also include the introduction of iPhone OS 4.0 and an announcement regarding a Verizon-compatible iPhone for mid-2010, neither of which came to fruition.

Update: According to Wired, an Apple spokeswoman has confirmed Apple's plans for late March availability of the iPad, but did not address any possible shortages or tightening of geographical distribution at launch.

Update, 11 a.m. PDT: An Apple spokeswoman told Wired.com on the phone that the "iPad will be available in late March."

Top Rated Comments

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26 months ago
According to Appleinsider, the iPad may have a limited production of just 300,000 units initially and/or have a delay in release due to "unspecified production problems."


"The upcoming iPad launch may be somewhat limited as a manufacturing bottleneck has impacted production of Apple's newest device," Misek wrote. "An unspecified production problem at the iPad's manufacturer, Hon Hai Precision, will likely limit the launch region to the US and the number of units available to roughly 300K in the month of march, far lower than the company's initial estimate of 1,000K units."


http://www.appleinsider.com/articles/10/03/01/apple_ipad_production_hit_by_manufacturing_bottleneck_report.html


If true I'm going to the Apple store on launch day in order to witness the carnage first hand.
Rating: 0 Positives / 0 Negatives
26 months ago

According to Appleinsider, the iPad may have a limited production of just 300,000 units initially and/or have a delay in release due to "unspecified production problems."


"The upcoming iPad launch may be somewhat limited as a manufacturing bottleneck has impacted production of Apple's newest device," Misek wrote. "An unspecified production problem at the iPad's manufacturer, Hon Hai Precision, will likely limit the launch region to the US and the number of units available to roughly 300K in the month of march, far lower than the company's initial estimate of 1,000K units."


http://www.appleinsider.com/articles/10/03/01/apple_ipad_production_hit_by_manufacturing_bottleneck_report.html



If true I'm going to the Apple store on launch day in order to witness the carnage first hand.


Or could be marketing spin to create greater demand. Who knows
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26 months ago
I'm going to start queing now.
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26 months ago

I'm going to start queing now.


Haha. I bet the lines will be insane on this one!
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26 months ago
Probably just hype by Apple to make sure that there are huge lines at their stores for the press to cover.

I'm likely to get the 32gb wifi but have changed my mind before. According to polling, it seems to be one of the least requested models, so I should be good to go.
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26 months ago
Or they want to create a culture where they are hard to come buy, thus giving the appearance to the uneducated customer that the product is very popular.:rolleyes:
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26 months ago
Artificially limiting supply to increase demand? Surely not.
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26 months ago
It's all moot if the FCC approval hasn't gone through by the intended launch date, anyway.
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26 months ago
Hard to believe Apple would delay the launch of such a highly publicized/anticipated product. They could do it and just have one "end of April" launch date for either flavor of the iPad...but I think it unlikely.

Just a few short weeks away until the launch. I guess if we don't see pre-orders going up on the Apple site soon, we'll know it's delayed!

:cool:

--DotComCTO
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26 months ago
If this is true i will have to cry :(
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