Once more potential supply problems could hinder Apple’s iPad sales goals. Don’t hold your breath for a next-day delivery as one analyst projects they are far “out of reach.”
Plans to sell 40-45 million of the tablets this year are “out of reach” with shipments hurt in the second and third calendar quarters of 2011, FBR analyst Craig Berger told investors Tuesday.
Although Apple has recently made headlines on multi-billion dollar deals to ensure a smooth flow of components, key iPad components such as touchscreens combined with parts shortages and production issues at manufacturer Hon Hai Foxconn may become a stumbling block to meeting what has been described as a “staggering” demand for the iPad 2.
“For the third quarter, he sees production dropping off to 5.2 million units, thanks to component shortages and production problems,” the Business Insider writes. During the company’s second-quarter financial call, chief operating officer (and stand-in CEO) Tim Cook said iPad 2 demand created “the mother of backlogs.” Consumers ordering online face a wait of 1-2 weeks.
Berger also said the after-effects of Japan’s earthquake and tsunami will be felt in the third quarter. However, the pressure could lessen if Apple discovers an improved stream of touchscreens. Cook has also warned the Japan issues could reduce third quarter revenue by $200 million.
Apple this morning sent out notes to people who ordered the iPad 2 earlier this month to expect deliveries this week.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
6 responses to “Production Problems Put Apple’s iPad Sales Goals ‘Out of Reach’”
Don’t believe their shipping estimates either. 1-2 weeks is now more like 3. Then add another week to ship from China. At least that’s what they’re saying. Who’s knows when I’ll get my iPad that I ordered on May 1st.Â
Apple should replace whoever is in charge of QA and production. Â First the iPhone’s antenna issue then the white iPhone, and now the ipad 2. Seriously, what’s up with this.Â
Antenna issue was a non-issue
The white iPhone had to be sorted out in terms of QUALITY before selling to consumers. If it had been another company, you’d be complaining about lack of photo quality.
The iPad 2 is facing MASSIVE demand. It is THE best-selling tech product EVER. Add the Japan earthquake and this is what you get. Apple is also trying to help those affected. But, you know what? They should just forget them and send the iPads our way already.