iPad production is just fine, says All Things D
Yesterday there was a small panic around the web when Bloomberg noted a report by Hong Kong-based J.P. Morgan analyst Gokul Hariharan who noted that Apple supposedly cut its fourth quarter orders for iPad components by 25%. Such a component cut could mean that iPad 2 sales were in trouble.
However, that's probably not the case. Today, AllThingsD noted that Sterne Agee's Shaw Wu has issued a research note saying that build plans for the iPad 2 remain "well above expectations," and expects that any production cuts should be no cause for concern:
"From our understanding, these production cuts are due to much improved capacity and Apple actively managing its inventory in front of what is likely an iPad refresh in the March quarter. The iPad 2 started shipping in March 2011 making the product likely due for an update near its 1-year anniversary. We would also like to remind investors that production changes are common throughout a quarter and through the lifecycle of a product."
Wu went on to say that distributor checks of iPad 2 sales indicated demand of the device remains strong. He also reiterated his iPad shipment estimates for Q4 2011 (which ends on Friday) of 12 million iPad 2s sold and the holiday quarter's Q1 2012 shipments of 15 million iPad 2s.
