JP Morgan analysts claim that Apple is cutting orders from iPad component suppliers by 25% for the upcoming quarter.

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.

The cut could represent a drop from 17 million units produced in the third quarter to 13 million units in the 4th quarter. The reason for the drop in orders is not explained in the report.

ipad 2 oblique

Apple sold 9.25 million iPads during the 2nd calendar quarter, and only caught up with demand in August, so it may be that Apple overestimated the peak demand. Sales numbers for the current quarter have not yet been reported.

There had originally been some speculation that the iPad 3 might launch this fall, but multiple reports have said the iPad 3 will not launch until 2012. Meanwhile, given the poor showing amongst iPad competitors, most expect that the iPad 2 is set to have a "free run" through the 2011 holiday period. The only other major competitor to be launched in this quarter appears to be Amazon who is said to be introducing their own Android-based tablet this week.

Update: Business Insider speculates that the drop in orders could have to do with Apple moving some iPad production from China to Brazil beginning later this year. What that theory fails to address, however, is the fact that the Brazilian production is still being performed by Foxconn/Hon Hai and will almost certainly utilize the same component suppliers used in Chinese-produced iPads, meaning that the shift should have little effect on orders from those supply chain partners.

Related Roundup: iPad
Buyer's Guide: iPad (Caution)
Related Forum: iPad

Top Rated Comments

mdriftmeyer Avatar
144 months ago
JP Morgan analyst should be fired

This from Reuters:

http://www.reuters.com/article/2011/09/26/markets-taiwan-stocks-idUST8E7JM02Q20110926


TAIPEI, Sept 26 (Reuters) - Taiwan stocks ended 2.4 percent
lower on Monday, with Apple Inc plays as well as
smartphone maker HTC tumbling.
The main TAIEX index fell 169.10 points to 6,877.12,
after opening down 0.28 percent.
Electronics shares shed 2.5 percent, with Apple
supplier and touch panel maker TPK Holding down 6.67
percent, and touchscreen panel maker Wintek and camera
module maker Largan Precision limit-down.
HTC shed 6.04 percent. Computer maker Quanta
however rebounded 3.95 percent, recovering from last week's
loss.
Financial shares were down 2.36 percent.
The Taiwan dollar weakened 0.59 percent to
T$30.566.

Guess what? Apple is shedding old contractors, not seeing a drop in demand.
Score: 4 Votes (Like | Disagree)
angrynstupid Avatar
144 months ago
When are you people gonna learn

"Analysts" and pundits are constantly trying to manipulate the market. Do you really think Apple would be this far off?
Score: 2 Votes (Like | Disagree)
ArtOfWarfare Avatar
144 months ago
I'd say this warrants first page status...

Seriously, if weekly stock reports get first page, I think the first time we've heard of Apple cutting down on iPad requests in awhile is first page worthy.
Score: 2 Votes (Like | Disagree)
JG271 Avatar
144 months ago
It looks like the production has finally caught up with the demand.

This is true, stock is now very very good compared to just a few months ago; but most people who wanted one now have one.

Perhaps they were over-producing them a few months ago for Christmas etc.
Score: 2 Votes (Like | Disagree)
OllyW Avatar
144 months ago
It looks like the production has finally caught up with the demand.

My daughter bought one a couple of weeks ago and said all the local electrical stores had them in stock and most were offering deals on accessories to get the sale.
Score: 2 Votes (Like | Disagree)
MacNut Avatar
144 months ago
Why?
Ya because China is known for their quality knock of products.:p
Score: 1 Votes (Like | Disagree)

Popular Stories

USB C Over Lightning Feature

EU Passes Law to Switch iPhone to USB-C by End of 2024

Tuesday October 4, 2022 3:30 am PDT by
The European Parliament today voted overwhelmingly in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal, known as a directive, forces all consumer electronics manufacturers who sell their products in Europe to ensure that a wide range of devices feature a USB-C port. This...
General iOS 16 Feature Yellow

10 New iOS 16 Features Coming Later This Year

Monday October 3, 2022 2:41 pm PDT by
iOS 16 was released to the public three weeks ago with a customizable Lock Screen, the ability to edit iMessages, improvements to Focus modes, and much more. And in the coming months, iPhone and iPad users have even more new features to look forward to. We've rounded up 10 new features coming to the iPhone and iPad later this year, according to Apple. Many of the features are part of iOS...
ipad pro m1 feature

Gurman: Apple Event This October Remains Unlikely, No Touch ID for iPhone 15

Sunday October 2, 2022 6:41 am PDT by
Apple is developing new iPad Pro, Mac, and Apple TV models, and at least some of these products will be released in October, according to Bloomberg's Mark Gurman. However, Gurman continues to believe that Apple is unlikely to hold an event this month. In the latest edition of his Power On newsletter, Gurman said "the big iPhone 14 unveiling last month was probably it for Apple in 2022 in...
iOS 16

Apple Preparing iOS 16.0.3 With More Bug Fixes Following iPhone 14 Launch

Monday October 3, 2022 7:53 am PDT by
iOS 16.0.2 was released last month with several bug fixes for iPhone 14 issues, excessive copy and paste permission prompts, and more. Now, evidence suggests that Apple is planning to release iOS 16.0.3 with additional bug fixes. Evidence of an upcoming iOS 16.0.3 software update has shown up in MacRumors analytics logs, which have been a reliable indicator in the past. There are several...
Apple SIM Card

Apple SIM No Longer Available for Activating New Cellular Data Plans on iPads

Sunday October 2, 2022 8:04 am PDT by
As of October 1, Apple SIM is no longer available for activating new cellular data plans on supported iPad models, according to an Apple support document. Introduced in 2014, the Apple SIM was designed to allow iPad users to activate cellular data plans from multiple carriers around the world. Initially, the Apple SIM was a physical nano-SIM card, but it was embedded inside later iPad Pro...
maxresdefault

Video: AirPods Pro 2 vs. Bose QuietComfort II

Monday October 3, 2022 12:50 pm PDT by
Apple on September 23 officially launched the second-generation version of the AirPods Pro, introducing updated Active Noise Cancellation, Adaptive Transparency, improved sound, and more. Right around the same time, Bose introduced new QuietComfort II earbuds with many similar features, so we thought we'd compare the two to see which has the edge. Subscribe to the MacRumors YouTube channel for ...
General YouTube Feature 1

You May Soon Need to Be a YouTube Premium Subscriber to Watch 4K Videos

Monday October 3, 2022 4:29 am PDT by
YouTube may make watching videos in 4K quality on the platform exclusive to only YouTube Premium subscribers, according to screenshots posted by users on Twitter and Reddit. On Reddit (1,2) and Twitter, some users have started to recently notice that on iOS, and presumably across other platforms also, YouTube is now saying that in order to watch videos in 4K, the user must be a paying...
dynamic island alan dye

Apple Executives Talk About iPhone 14 Pro's Dynamic Island in New Interview

Sunday October 2, 2022 10:48 am PDT by
In a new interview, Apple's senior vice president of software engineering, Craig Federighi, and Apple's vice president of human interface design, Alan Dye, sat down to discuss the thinking behind the iPhone 14 Pro's Dynamic Island and how it was developed. During the interview with the Japanese magazine Axis, Federighi, who oversees the development of iOS, said Dynamic Island represents the...