Apple's iPad Pro to sell 2.6M units in Q4 despite significant display, Apple Pencil production issue
Apple is on track to ship between 2.4 and 2.6 million iPad Pro units in its first quarter of sales, though inventory of the giant size tablet and its integral Apple Pencil accessory is facing constraints due to production snarls, according to one insider.
In a research note obtained by AppleInsider, KGI Securities analyst Ming-Chi Kuo says Apple is seeing less than satisfactory output of iPad Pro's massive 12.9-inch display, the tablet's main draw. Kuo says Sharp is currently the sole supplier for Pro's high-resolution screen, though Samsung is expected to lend a hand before the end of 2015.
As many iPad Pro buyers are well aware, Apple Pencil was in strictly limited supply at launch, with current ship-by times pegged at four- to five-weeks. Confirming industry whispers, Kuo says assembly of the complex device is not going as smoothly as planned. He expects Pencil yields to improve as producers overcome inefficiencies associated with building a new format device.
As for unit sales, iPad Pro is off to a decent start with Apple moving 2.4 million to 2.6 million copies to close out 2015. Moving into next year, Kuo expects shipments to decline 10 percent to 2.1 million to 2.3 million units. He notes, however, that the forecasted dip is the smallest out of Apple's entire product lineup.
Finally, Kuo breaks down supply chain allotments, noting TSMC is manufacturing all A9X processors. Radiant is supplying 100 percent of iPad Pro's backlight modules, Parade is the lone display timing controller supplier and GIS accounts for 75 percent of all touch module and LCM assemblies. Longtime partner Foxconn is once again taking lead on putting all the pieces together.
In a research note obtained by AppleInsider, KGI Securities analyst Ming-Chi Kuo says Apple is seeing less than satisfactory output of iPad Pro's massive 12.9-inch display, the tablet's main draw. Kuo says Sharp is currently the sole supplier for Pro's high-resolution screen, though Samsung is expected to lend a hand before the end of 2015.
As many iPad Pro buyers are well aware, Apple Pencil was in strictly limited supply at launch, with current ship-by times pegged at four- to five-weeks. Confirming industry whispers, Kuo says assembly of the complex device is not going as smoothly as planned. He expects Pencil yields to improve as producers overcome inefficiencies associated with building a new format device.
As for unit sales, iPad Pro is off to a decent start with Apple moving 2.4 million to 2.6 million copies to close out 2015. Moving into next year, Kuo expects shipments to decline 10 percent to 2.1 million to 2.3 million units. He notes, however, that the forecasted dip is the smallest out of Apple's entire product lineup.
Finally, Kuo breaks down supply chain allotments, noting TSMC is manufacturing all A9X processors. Radiant is supplying 100 percent of iPad Pro's backlight modules, Parade is the lone display timing controller supplier and GIS accounts for 75 percent of all touch module and LCM assemblies. Longtime partner Foxconn is once again taking lead on putting all the pieces together.
Comments
I was at two different Apple stores today and they both said they're selling iPad Pros and Pencils as fast as they can get them in.
Weren't you the one saying that Cook et al weren't pushing the iPad Pro use cases hard enough?
First time I heard of "production snarls". Is this when they ask for the production line to operate but it snarls in protest?
2 Billion dollars or more.
I was at two different Apple stores today and they both said they're selling iPad Pros and Pencils as fast as they can get them in.
My bet is that 2.5M is on the low side. I expect more like 3-3.5M.
I said I don't think Cook's Apple is very good at the "why" and I still think that.
My guess would be 1.2MM for FQ1, until production issues are sorted out.
I said I don't think Cook's Apple is very good at the "why" and I still think that.
That's where Steve Jobs will be missed. To have the skill of storytelling like he did is a rare gift. And actually, when it comes to new products and taking charge of the narrative, I would prefer to see Schiller take charge of that. He seems to harbour more enthusiasm and knowledge when it comes to such things.
First time I heard of "production snarls". Is this when they ask for the production line to operate but it snarls in protest?
The fact that there' s a 4 to 5 week wait on Apple Pencils should be somewhat of a clue.
I said I don't think Cook's Apple is very good at the "why" and I still think that.
Yeah but in the end, do you really think most of the target audience for this (any?) Apple product are looking to the CEO for why? Most people don't give a shit about what Tim Cook said to some reporter. You and I are not typical users, people who read these interviews and rumors sites discussions are the (nerdy) minority. Marketing will take care of it.
On my phone on mobile site your avatar looks like a naked man interacting with Apple Watch with his wiener.
The Pencil is complex and difficult to manufacture—obviously.
You are thinking about it wrong.
My bet is that 2.5M is on the low side. I expect more like 3-3.5M.
Of course you completely ignored the fact that there were production constraints (on some models and accessories). All of which affects sales.... backorders don't count.
Of course it is something we will likely never have the numbers for... just estimates/guesstimates...
These people are being blind to what they are being shown or stubborn to accept what they are being shown by Tim Cook about any product. No, Tim Cook is not a Steve Jobs-like showman. Tim Cook does not need to be that. How many times have people criticized foreigners for being the Steve Jobs of wherever? Yet, they do not hesitate to say Tim Cook is not Steve Jobs. Go figure.
On to use cases. Maybe Tim Cook could have brought in an office cube structure to sit and or stand in as he presented the iPad Pro to the people who claim Tim Cook does not provide compelling use cases. Well, I saw the introduction of the iPad Pro and listened to what Tim Cook said and watched the videos Tim Cook presented and watched companies present their optimized versions of iPad Pro apps. Adobe's apps were compelling use cases to me. Microsoft's apps were compelling use cases to me. What did I instantly learn due to my eyes being open? The iPad Pro had use cases. I also learned about the target audience.
After the presentation, stories about various businesses using the iPad Pro arrived. Stories about the iPad Pro being used in education. More and more and more use cases were presented, but Tim Cook did not present any. Really?
Too be such a bad presenter of device use cases, Tim Cook's Apple is doing some things so very right that when compared to Steve Jobs' Apple Tim Cook can be justified in saying I did not do it the way Steve Jobs did it.
In the years Tim Cook has lead Apple, Tim Cook has changed Apple to resemble his qualities. Tim Cook has rock star status. Fans want selfies with Tim Cook and they get them. Conferences want Tim Cook and a few get him. Universities want Tim Cook and a few get him. Nation leaders come to the USA and Tim Cook is one of the people they want to meet.
Tim Cook is doing amazingly well. I have no doubt whatsoever if something happened to Tim Cook every story about Apple's demise after Steve Jobs could be re-released by replacing Steve Jobs' name Tim Cook's name and/or adding Tim Cook's name after Steve Jobs' name. But there would be stories of how Tim Cook was not Steve Jobs and Apple moved forward without dwelling on how Steve Jobs did it.
Maybe one day the purposefully blind and/or stubborn people will follow Tim Cook decision to move forward and not dwell on how Steve Jobs did it. There is much that Apple can do to change how things are done in this world. Steve Jobs is not here to lead Apple. Tim Cook is. And the use cases for are looking good to me.
If only they stuffed Steve Jobs and put him on display .... he would not be missed.