Apple Lowers Q4 iPad Parts Orders

| Apple Stock Watch

Apple has apparently cut iPad parts orders for the fourth quarter by some 25 percent, according to JPMorgan analyst Mark Moskowitz. If the information from parts suppliers proves to be true, that could mean lower sales for companies such as Hon Hai Precision, and also marks the first time Apple has trimmed back on its iPad component orders.

iPad 2Apple apparently cut iPad 2 parts orders

Mr. Moskowitz didn’t say which companies are likely to be impacted by the reported order cut, according to Bloomberg. While it’s possible a reduction in parts orders could signal slowing demand for the multimedia tablet, it could also be a move on Apple’s part to better control component expenses.

Mr. Moskowitz isn’t seeing Apple’s order changes as a negative and still expects the company to ship between 10.9 million and 12 million iPads in the third and fourth quarters this year.

Analyst Wanli Wang from RBS Asia, however, thinks it’s time for investors to take a less aggressive stance on Apple’s stock value. “It’s back to reality,” he said. “Now it seems even for Apple, due to the market situation, we need to be conservative.”

Apple is currently trading at US$392.50, down 11.80 (-2.92%).

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Apple is just getting ready for iPad 3 release late 2011/early 2012.


I find this report to be totally FUD.

Lee Dronick

Apple is just getting ready for iPad 3 release late 2011/early 2012.

Or quietly changing suppliers. If it was me I would be getting away from relying on Chinese or Taiwanese suppliers and assemblers, my gut feeling is that something is brewing in east Asia.


If you’re Samsung this is probably true.


Looks like the JP Morgan guy forgot that Apple is moving some iPad production to the new Foxconn plant in Brazil. His numbers only refer to the supply chain in Asia.

Did J.P. Morgan’s Foxconn analyst forget about Brazil?


iphonzie, VERY good point!!  I had forgotten about that.  Thanks.

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