Sharp cuts production of 9.7" iPad screens, demand may be shifting to Apple's iPad mini
Sharp is said to have "nearly halted" production of 9.7-inch panels for Apple's full-size iPad ??a change made as sales are predicted to shift to the 7.9-inch iPad mini.
Two sources signaled to Reuters that production of 9.7-inch LCD displays has "fallen to a minimal level" at its Kameyama plant in Japan. Friday's report indicated that a slowdown began at the end of 2012.
"The sources didn't say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini," the report said, "and were unable to characterize Apple's overall tablet sales."
While the sources reportedly characterized the changes as inventory management by Apple, some market watchers believe the new iPad mini may have had a significant effect on sales of the full-size iPad. Data from NPD DisplaySearch published in December indicated the iPad mini is already on pace to outsell the iPad.
A breakdown of iPad versus iPad mini sales for the holiday quarter is not likely forthcoming, however, as Apple does not detail sales of individual products. The company is set to report its quarterly earnings next Wednesday, a call that has been declared the company's most important in a decade.
The report of iPad panel orders being slashed at Sharp comes as Apple has already been hit with rumors that the company has drastically cut iPhone 5 component orders in response to weakening demand. However, many analysts have stood by Apple, dismissing the apparent order reductions as typical supply chain management and not a sign of consumer demand.
A drawdown in component orders for the iPad could also be a sign that Apple is preparing to launch a new model. One report from earlier this month claimed Apple plans to debut a fifth-generation iPad in March.
Analyst Ming-Chi Kuo of KGI Securities, who has a strong track record in predicting Apple's next moves, said this week that he has been told Apple's next iPad will be "significantly lighter and slimmer." The so-called "iPad 5" is expected to have a narrow border design, similar to the one found on the iPad mini.
Two sources signaled to Reuters that production of 9.7-inch LCD displays has "fallen to a minimal level" at its Kameyama plant in Japan. Friday's report indicated that a slowdown began at the end of 2012.
"The sources didn't say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini," the report said, "and were unable to characterize Apple's overall tablet sales."
While the sources reportedly characterized the changes as inventory management by Apple, some market watchers believe the new iPad mini may have had a significant effect on sales of the full-size iPad. Data from NPD DisplaySearch published in December indicated the iPad mini is already on pace to outsell the iPad.
A breakdown of iPad versus iPad mini sales for the holiday quarter is not likely forthcoming, however, as Apple does not detail sales of individual products. The company is set to report its quarterly earnings next Wednesday, a call that has been declared the company's most important in a decade.
The report of iPad panel orders being slashed at Sharp comes as Apple has already been hit with rumors that the company has drastically cut iPhone 5 component orders in response to weakening demand. However, many analysts have stood by Apple, dismissing the apparent order reductions as typical supply chain management and not a sign of consumer demand.
A drawdown in component orders for the iPad could also be a sign that Apple is preparing to launch a new model. One report from earlier this month claimed Apple plans to debut a fifth-generation iPad in March.
Analyst Ming-Chi Kuo of KGI Securities, who has a strong track record in predicting Apple's next moves, said this week that he has been told Apple's next iPad will be "significantly lighter and slimmer." The so-called "iPad 5" is expected to have a narrow border design, similar to the one found on the iPad mini.
Comments
Second, it could mean a 5th generation is on its way, with a more substantial redesign to address the size and weight.
Third, the holiday season has passed.
Are they winding down production of the old iPad to flush out stock before a new one is unveiled in March? I mean the screen is one component, which they probably have stock of, which needs to be flushed out into assembled iPads, which they probably also have stock of, which need to be flushed out to stores, which also have their own stock.
On a semi-unrelated note, I hope they come out with a bigger iPad. I only use my first gen iPad for email, web-browsing, music and videos so Retina+faster processor really isn't enough to justify an upgrade, especially since 64 GB capacity is a must. A 13" screen on the other hand...
I just can't see Apple not addressing the larger touch screen device market now that all these Windows 8 devices are coming out. A frankenstein MacBook hybrid won't happen, so that really only leaves a larger iPad. Timing is perfect for Apple to show the world how to "do it right", plus now as Android tablets gain credibility and market share it gives Apple a new high end.
Yea, that seems about as likely as that 27" tablet
Dare I ask why?
Quote:
Originally Posted by AppleInsider
... The so-called "iPad 5" is expected to have a narrow border design, similar to the one found on the iPad mini.
I don't see this. The mini has a "narrow border design" to make it possible to hold with one hand. The 9.7" iPad held with one hand is always going to have a thumb planted firmly on the screen, and while they could probably accommodate that in software, it still means a thumb planted on the screen, covering up what's displayed, so you have to either keep moving your thumb, or, if the app allows it, scrolling the screen up and down to see what's there. Sounds like an ergonomic nightmare.
The only reasoning here is that the "narrow border design" is "the new design trend", but I don't see that as a valid conclusion, nor supported by any evidence.
I went several times during the holiday to the Apple store next door and I was able to make one of the guys talks about sales. They never gave me precise numbers of course, but they did said the mini was outselling the regular ipad, with one giving a hint the ratio was about 2 ipad mini sold for 1 regular ipad.
That being said, because of the growth in that market I think Apple will be able to sell just a little less 9.7" ipads than last year. So they may have sold 13 millions 9.7" ipads and about 8 millions ipad mini for a total of 21 millions, which is still better than last year 15 millions. This is good but expect Apple market share to be in free fall as other tablets are selling a lot more.
Apple is getting squeeze by price in all markets, and with competition catching up on the tech side, they are taking a hit. Hopefully, for shareholders, they will react and come up with something. imo the most urgent matter is multiple iphone models and lower price across all product lines or they must come out with better products to justify the premium. Personnaly I wish they address the broader market and not just the high end to avoid a repeat of the 1980's. I am affraid its already to late and Android as become the "windows" of the mobile world. At some point, critical mass will make everyone go with android and Apple will niche itselft with very low sales.
One thing is clear for Apple, if recent reports are accurate, is that Apple's mindshare among the younger generation has declined, and moved to Samsung's junkier models. The question for Apple is how to excite the 30-somethings and below again, while maintaining quality.
I know my daughter, until recently, had thought the iPhone and iPad were expensive toys that I waste money on, and mere status symbols for the upper income crowd. Fresh out of college and moving into the work world, she is finally understanding that her MBP, iPad-mini, and iPhone are not just for fun, but for the business of making a living, for continuing one's education through ebooks and also, for maintaining contacts and support among her friends and colleagues. And, for entertainment, after a hard day's work.
Could Apple just shift the production of the 9.7" screens to LG and let Sharp make the smaller ones?
iOS in a 13 inch tablet would be a waste. If such a tablet had desktop style multitasking then it would make sense but until then. No.
The interface is cleaner. And it's more productive. Merging text and email into 'People'. Having messaging, Facebook and email all in the one place is easier. It's just a more efficient interface. The live tiles show great info straight on the start screen without needing to go into apps. It's nicer than android. It's simpler than android. It's more efficient than iOS. The only problem is the app ecosystem, which will be hard to give up. WP8 is definitely on the right path to a real smartphone. iOS hasn't changed since the first iPhone. It really hasn't. They need to step up because there are better interfaces out there now.
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I agree on your first point about Sharp winding down old tech screen and increasing production on we tech screens.
As far as mind share? No young people love and aspire to own Apple products. The problem is price and that's why they buy cheaper devices.
It's not that Apple isn't cool. If they had the choice they would have MacBooks iPads and iPhones. I'm at a college now and everyone I know has MacBooks iPhones and iPads and the people that don't wish they did.
Only nerds and geeks love their Linux and androids.
Quote:
Originally Posted by herbapou
...imo the most urgent matter is multiple iphone models and lower price across all product lines.
I hope Apple's smarter than to try and race everyone to the bottom. Their market share is shrinking, but their share of the industry's *profits* is still huge. That's where Apple excels. As long as they hold on to the high end, they're fine with a 20-30% market share by device count. The days of Apple having >50% market share are gone, it was only like that because there was no one who could compete. Now there are other companies flooding the market with low-end devices, but low end = low profit, even if you sell a lot of them. Apple just needs to keep innovating to hold on to the high end, keeping their competitors on their heels.
I know a lot of people would disagree, but I stand by my prediction that it's getting close to time for a larger iPad. More and more consumers are buying tablets instead of laptops/desktops. Most consumers don't actually *need* a laptop or desktop, but the ~10" screen size of iOS/Android tablets is very limiting. Windows 8 is a frankenstein monster, but it also has no competition in the larger touch screen device market.
So my prediction: either this year or next, Apple will release their take on the larger touch screen device. Windows 8 has proven that taking a desktop OS and making it more like a tablet is a bad idea. Apple will go about it the other way - make a larger iOS device with additional capability bringing it closer to a desktop OS (closer to, not on par with). It will be enough to fully replace a laptop for most consumers, and the OS X line will persist for pros and the remainder of consumers.