Analysts Dispute Supply Chain Conclusions of iPad Production Cuts
Earlier today, a report from JPMorgan analysts made headlines for its claim that Apple has slashed its fourth quarter iPad production plans by 25%, sparking speculation and rumors that Apple may be planning a price cut amid weakening demand.

The Wall Street Journal notes, however, that several analysts have already spoken out against the conclusion, arguing that a single supply chain data point is insufficient to warrant such drastic production cut predictions. From Piper Jaffray analyst Gene Munster:
We also note that previous calls based on sell-in or supply chain data have, for the most part, proven to have very little correlation with Apple’s results vs. consensus dating back to early iPod shipments (2003). We believe Apple purposely maintains enough suppliers and manufacturing partners to make any one supply-side data point inconclusive.
Analysts also note that Apple appears to have actually accelerated production and bumped up third quarter orders to stockpile iPads heading into the holiday shopping season. Sources also indicate that Apple is likely to begin production of the iPad 3 at the end of the fourth quarter or early in 2012 and may be accelerating production now in order to ease that transition.
Apple struggled with the transition from iPad to iPad 2 production earlier this year, with weak sales coming in the first quarter of this year as Apple scaled down production of the original iPad and was unable to meet heavy initial demand for the iPad 2. From Susquehanna analyst Chris Caso:
We believe chatter regarding iPad production cuts are misleading – we have seen pull-ins, not cuts. We have noted recent comments by competitors discussing iPad production cuts for 4Q. Our recently published AAPL supply-chain checks noted a sequential decline in 4Q iPad builds from 17 mln-19 mln units in 3Q to 11 mln-13 mln units in 4Q. However, the 4Q sequential decline was accompanied by an increase in 3Q builds, leading us to conclude that production was likely pulled-in from 4Q to 3Q.
Some have suggested that the fourth quarter production cuts may be due to Apple shifting some production to Brazil by the end of the year, although most of Apple's Asian component suppliers would be expected to be serving that production channel in addition to the existing Chinese channel.
Apple's stock dropped as much 3% earlier today as the initial report circulated, but has since rebounded and is currently down only about 1.25%.
Popular Stories
Unidentified governments are surveilling smartphone users by tracking push notifications that move through Google's and Apple's servers, a US senator warned on Wednesday (via Reuters). In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from the tech giants to track smartphones. The traffic flowing from apps that send push notifications...
iOS 17.2 has been in beta testing for over a month, and it should be released to all users in a few more weeks. The software update includes many new features and changes for iPhones, including the dozen that we have highlighted below. iOS 17.2 is expected to be released to the public in mid-December. To learn about even more features coming in the update, check out our full list. Journal ...
Recently, MacRumors has received details on the battery currently being tested on the upcoming fourth-generation iPhone SE, and the information corroborates previous findings in relation to the device. The iPhone SE 4, known by its device identifier D59, is expected to use the exact same battery found in the base model iPhone 14. Partially assembled prototypes of the next iPhone SE have been ...
Best Buy's month-long holiday sale continues this weekend with multiple all-time low prices on Apple's line of MacBook Pro and MacBook Air computers. In addition to Apple notebooks, Best Buy's event has discounts sitewide on home appliances, TVs, video games, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive...
Apple appears to have closed the loophole that Beeper Mini used to bring iMessage to Android, putting a stop to blue bubbles from Android devices. Beeper Mini quit working earlier today, with users receiving "failed to lookup on server: lookup request timed out" error messages. Beeper said on Twitter that it is investigating the issue, but Beeper CEO Eric Migicovsky told TechCrunch that "all ...
Apple's iPhone 15 lineup came out in September, and while most reviews are done shortly after a new device launches, we like to follow up with a longer term review that gives us an opportunity to provide a deeper dive into what it's like using these phones on a day to day basis for months. Subscribe to the MacRumors YouTube channel for more videos. MacRumors videographer Dan Barbera has been...
Anker has launched its newest holiday sale, this one offering a special deal every day in the lead-up to Christmas. These sales offer up to 50 percent off select products, and include discounts on USB-C chargers, portable batteries, and much more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which ...
To boost falling iPad sales, Apple has a major refresh planned for the iPad lineup in early 2024, according to Bloomberg's Mark Gurman. Apple plans to debut new iPad Air and iPad Pro models, both of which will feature notable changes. The iPad Air will come in two sizes like the iPad Pro for the first time. The smaller model will continue to measure in at 10.9 inches, but the larger version...
Top Rated Comments
and invitations should go out tomorrow, and stock will go back up
Your computer illiterate relative is going to run a developer preview of an OS that won't be out for probably another year? Is this a joke? Good luck, you'll be spending even more time helping him get any actual work done.
http://blogs.wsj.com/marketbeat/2011/09/26/apple-shares-briefly-fall-on-fear-of-unthinkable-flagging-in-ipad-demand/
drive down the price, back up the truck, re-tract statement, sell back your own clients at a profit. repeat.
.
You think that many iPad purchasers have even heard of Windows 8?