iPad mini 4-6 Weeks Behind Schedule Due to Supply Chain Issues

| Rumor

Apple’s much-rumored and highly-anticipated “iPad mini” is 4 to 6 weeks behind its production schedule due to manufacturing issues faced by suppliers, according to Topeka Capital Markets supply chain analyst Brian White. In a note Thursday, Mr. White predicted that these problems will result in a relatively small 5 to 7 million units sold in the December quarter.

Similar to the iPhone 5, we sensed that suppliers have found the specs around Apple’s 7.85-inch “iPad Mini” to be a challenge and yields have been frustrating. In our view, this is the reason the “iPad Mini” is 4–6 weeks behind our original launch expectation that we discussed in June… We believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch.

As for a potential price, increasingly credible tablets from companies such as Amazon and Google have defined the price range for a 7- to 8-inch tablet at $200 to $250. In keeping with Apple’s insistence on high margins and lack of pressure to be a price leader, Mr. White feels that the “iPad mini” will arrive slightly higher, in the $250 to $300 range.

iPad mini RenderingiPad mini rendering via MacRumors.

Even at this slightly higher price, the smaller iPad will share the “iconic aesthetics” of its larger sibling and “blow away” competing products, Mr. White argues.

Apple is expected to announce the iPad mini, and possibly an updated third generation iPad featuring the new Lightning connector, at a special event this month. Recent rumors suggest that invitations for the event will be distributed on October 10, with the event itself approximately one week later, although earlier rumors also suggested a possible event at the end of the October.

[via Business Insider]

Comments

iJack

Jim, have you noticed that these “rumors” are getting progressively more detailed?  Is it possible that they are in fact, controlled leaks?

I do hope that Brian White is wrong about the price point, though.  I have two teenaged daughters, and then there’s me…..

Jim Tanous

iJack,

Indeed, it would not be the first time that Apple used controlled leaks to keep attention focused and realistic. I also think that Apple was genuinely surprised by the critical reception, price, and hardware components of Amazon’s new Kindle line, and even the Nexus 7. Not to say that those are better tablets, but they may be more competitive than Apple anticipated.

Now, with Apple seemingly “late” to the 7-inch tablet game, they want to keep everyone focused on their next iPad and keep the notion that it’s going to “blow away” the competition fresh in everyone’s mind.

I don’t think Mr. White is wrong on the price, unfortunately, and I feel your pain smile

Lee Dronick

It is entirely possible Jack, the churn is free advertising and keeps the attention focused on Apple. It may also be that there are so many people at numerous suppliers and manufacturers working on these projects that it is hard to keep the designs and features secret. It could be both, guerrilla marketing and people who can’t keep a confidence.

iJack

Thanks, guys.  I knew much of that already, so my question was largely rhetorical.  I think I was hoping someone would say with authority; “No. no! You’ll have one in you hands by the end of the month, and will cost you a box of double-chocolate donuts.”{/i}

*sigh*

Lee ~ I’m of the belief that the ‘churn’ is far better marketing than even free advertising, and that Apple’s continued silence makes it exceedingly powerful.  As for keeping a confidence, you must have notice how many ‘leaks’ are coming from suppliers in China.  I am certain Apple could have used their financial clout to stop such leaks if they had chosen to.  As an old-time politico, I feel sure Apple itself is the source of all leakage, and the Grand Master of controlling spin.

iJack

Damn!  Used the wrong closing brackets, above.

Lee Dronick

Remember back in the 1980s and Guy Kawasaki as the Mac’s first guerrilla marketer? And yes, Apple’s silence only throws thermite on the fires of rumor.

Lee Dronick

I wonder if I can close the italics

Lee Dronick

Yup. Interesting how it spills over into other’s posts.

iJack

I think it’s flat-out creepy, Lee.
But I wish I’d thought of closing the italics.  grin)

Lee Dronick

You tried to close the italics, but used curly brackets instead of square brackets.

it would be nice to have a preview, or least an edit, option.

iJack

I’ve been praying and braying for such tools for weeks.

Log-in to comment