Analyst: Apple Doubling iPad Production to 2.5M Units for Third Quarter

Apple apparently has gotten the message over repeated reports of iPad shortages. The Cupertino, Calif. company may double production for its tablet device to 2.5 million units per month by September, up from 1 million to 1.5 million expected for next month, one analyst said Tuesday.

In a note to investors, Sterne Agee analyst Vija Rakesh writes checks with memory suppliers indicates Apple is preparing for a wider international launch and the upcoming back-to-school markets.

“We believe most of the manufacturing bottlenecks [are] now solved in the iPad supply chain even though memory continues to be a constraint,” Rakesh said. Apple could make 6-7 million iPads by the third quarter of 2010, he adds.

Although a prototype of the iPhone 4G many expect to be unveiled next month has already been splashed across the front pages of gadget sites, the new iPhones “are barely starting” to be manufactured, the analyst claims. However, with Apple producing both the iPad and a new iPhone, memory suppliers should benefit, along with the Cupertino consumer electronics firm. Rakesh gives Apple a solid “Buy” rating.

In related news, ahead of the June 7 WWDC, several moves are underway in preparation for a new iPhone. Retail giant Walmart will reportedly cut to $97 the price of a 16GB iPhone 3Gs. Apple also is planning to phase-out the iPhone 3G before the 4G arrives, according to one well-connected blogger. Finally, the iPhone maker is reportedly preparing a commercial to introduce the new handset. The commercial will be directed by Sam Mendes, a Hollywood name known for American Beauty.

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