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5 million iPads to be built in first half of 2010?

updated 04:25 pm EST, Tue March 9, 2010

Analyst dismisses talk of production delays

Apple should be able to churn out approximately 5 million iPads in the first half of the year, claims FBR Capital analyst Craig Berger. The number is higher than what some analysts have said Apple will sell in all of 2010, and is based on a dismissal of claims that the company is experiencing production setbacks. "We believe various news articles and competitor notes calling for a build delay were just false alarms," says Berger. At least one report has suggested that the delay to April 3rd is based on software issues.

Companies involved in supplying parts for the iPad may include Infineon, Skyworks, Triquint, Broadcom and Texas Instruments. Broadcom would benefit in particular, argues Berger. The company produces a variety of embedded chips, such as wireless receivers.

The analyst has meanwhile altered his March-quarter build predictions for Macs, iPods and iPhones. iPod numbers have been shifted the most dramatically, from 4 to 9.3 million. Some 1 million desktop Macs are now expected, double an earlier forecast, while notebook figures have been raised from 1 to 1.7 million. iPhone numbers have been cut from 7.5 to 6 million, based on the belief that Apple wants to clear out inventory.

Berger cautions that shifts in production do not necessarily match sales, as they can be tied not only to inventory but to new product rollouts and seasonal matters. Q2 production estimates, for instance, currently include 7.3 million iPhones, 7.2 million iPods, 500,000 notebooks and 100,000 desktops.

Apple stock is presently trading at some of its highest levels ever, around $223 as of Tuesday afternoon. In the depths of the recent recession, the stock was trading for less than $80.




by MacNN Staff

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Comments

  1. iphonerulez

    Joined: Dec 1969

    0

    Should be plenty of iPads to go around...

    Certainly a lot more than what it would take for the oft-projected scenario of nobody will be buying an iPad. Originally Apple had said they would gear up for one million units a month but they didn't say for how long. Apple must think the iPad is going to be a huge seller. I sure hope they're right. Apple should have an open field for a few months. By then, word of mouth should make the iPad the tablet to have and may effectively lock out competitor tablet sales. That sure would be sweet. The iPad needs just a few killer apps to become a best seller. It also would be nice to have the education system take to it.

  1. Salsa

    Joined: Dec 1969

    0

    Apple isn't competing for tablet sales...

    Apple is going after the much larger market for netbooks (40 million units will be sold in 2010) and even notebooks (160 million). If Apple can get 20% of the netbook market and 5% of the notebook market, that will total 16 million units. That will blow past Wall Street estimates of 1-5million. I am long AAPL. I think it can easily hit $350/share in a year.

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