iPad supply issues may be cause for caution, says analyst
updated 10:45 am EDT, Fri May 21, 2010
Large swaths of Apple Stores missing all models
Sellouts of the iPad at Apple Stores may be a good sign for investors in some respects, but they are also reasons to check optimism, says Piper Jaffray's Gene Munster. The analyst notes that after getting in contact with 50 US Apple outlets, 74 percent report being sold out of all iPad models, while 26 percent have some Wi-Fi models in stock. None have the iPad 3G. The numbers back similar ones from RBC's Mike Abramsky.
Online orders are now said to be taking seven to 10 days to ship, up from five to seven. In-store reservations should be fulfilled faster, according to an Apple representative, with a wait of four to seven days. In tandem with the imminent launch of international iPads though, these factors could mean that iPad supply problems will last through June, Munster argues. A stable flow of tablets may only be reached in the fall.
Munster comments that while the demand is good, and may suggest sales in excess of a 1.3 million figure he has predicted for the June quarter, some other forecasts are "getting ahead" of what Apple can actually deliver. The company is believed to selling twice as many iPads per week as it is Macs, to the point that shipments are within reach of iPhone levels.
Fresh-Faced Recruit
Joined: Nov 2008
Apple is in trouble now...
If consumers can't get their hands on an iPad, they're going run out and buy... Oh, wait! There won't be any rival tablets available for months. I think those poor consumers are just going to have to wait a week or so for new iPad shipments and sales won't be seriously impacted at all.
I really feel sorry for workers at Foxconn because I'll bet those young Chinese women are working their little fingers to the bone trying to keep up with iPad demand.