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.
Apple 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%).