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

Monday March 1, 2010 6:51 am PST by Eric Slivka

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."



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