Apple Reduces Supply Orders, May Cut iPad 2 Price
By 
A report from JPMorgan Chase & Co. released to investors this week has revealed that Apple may be seeing less demand for the iPad 2, and has cut its fourth-quarter supply orders by 25 percent.
Apple was slated to order and sell 17 million iPads during the fall and winter seasons, due to upcoming holiday demand. However, that number could drop as low as 13 million. The information comes from several current supply vendors, who reported that Apple recently reduced its order numbers.
DigiTimes also recently reported that Apple might be lowering the price of the iPad 2, due to decreased demand. A lowered price could also be a response to the imminent release of Amazon’s tablet, which is rumored to be selling for much less than Apple’s iPad.
However, JPMorgan analyst Mark Moskowitz is still predicting that Apple will sell 10.9 million iPads this quarter, and 12 million during the holidays. Apple sold 9.25 million units last quarter, and sales numbers have continued to increase.
While it’s not out of the question that reduced iPad 2 orders could indicate a shift from manufacturing iPad 2s in favor of iPad 3s, the more likely explanation is that factories in China are reducing output as production ramps up in a new Brazilian plant. It remains to be seen if the reduction is actually a global cut, and whether reduced demand is the reason behind it.
A lower priced iPad 2 may not be far off, as the Amazon tablet is expected to provide stiff competition for Apple. The introduction of a new, aggressively priced Android tablet could very well cause Apple to lower prices for the holidays.
[via Bloomberg]
