Apple Halting Mac Component Orders Due to Overestimated Demand?
Digitimes reports that Apple has essentially halted all component orders for its Mac product lines, apparently working through significant inventories of components delivered during an aggressive ramp-up late last year that may have proven overly aggressive.
The suppliers originally expected to finish digesting their Mac inventories in April, but are now stranded waiting for further instructions from Apple.
The sources revealed that Apple's Mac orders to the supply chain dropped to almost nothing after the Lunar New Year holidays. Apple had high hopes for its Mac product lines and placed aggressive orders at the end of 2012; however, the company is now badly affected by the decision.
The report claims that Apple generally provides shipment forecasts to its supply chain partners at the beginning of each quarter, but the company has not done so for the second quarter. The lack of information has reportedly left suppliers wondering when they will be able to resume production.
Just last week, Digitimes claimed that Apple is likely to refresh its notebook lineup at the end of the second quarter, so it seems that suppliers may need to start ramping up production for new models in the relatively near future.
Apple frequently has to juggle its supply chain as it approaches product updates, seeking to accurately estimate consumer demand in order to deplete its existing inventories just as the new models are released. But if today's report is true, it seems that Apple may have overestimated customer demand for the early part of 2013 and is now finding itself with substantial inventories heading into its next round of product updates.
Apple CEO Tim Cook has also warned about reading too much into rumors from Apple's supply chain, noting that its "very complex" nature makes it difficult to accurately interpret what is actually going on from limited data points, even if that data is accurate.
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