The Tale of iPad Delays and iPhone Sales
While some rumors remain just that, the build situation regarding Apple’s iPad seem to inch closer to fact and reality. According to Peter Misek of Jefferies & Co., “we have confirmed the iPad 2 build plans have been scaled back.” From an estimated 13.6 million units, this has been reduced to just about 12 million units for the last quarter of the calendar year.
As for reasons, Misek claims a few, although with going too deeply into his sources. He claims that
1) iPad 2 HD was canceled (~1M units retooled); 2) Sooner-than- expected iPad 3 launch in late Jan; 3) Retail inventory caution due to potential demand slowdown; 4) Some production shift to Brazil. We see 29M iPads shipped in H2 vs. 14M in H1. We trim our 2011 global tablet forecast from 70M to 65M.
He said that the lower iPad shipments may still compensated for by the sales of iPhones. His iPhone estimate is 28.7 million units, a figure that is higher by 3 million units for the fourth quarter. This number will improve gross margin. And so Misek raised his December-quarter EPS estimate from $8.85 to $9.17. Today, Apple shares are up $2.38 at $401.64.