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Apple now building 2M iPads per month to meet demand

post #1 of 131
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Apple has doubled its monthly output capacity of the iPad and is now manufacturing 2 million per month to meet strong consumer demand, but the company reportedly would like to go even further and produce 3 million every month very soon.

Analyst Katy Huberty with Morgan Stanley indicated that iPad builds recently increased to 2 million per month, up from the previous number of just 1 million a month. Apple allegedly indicated to its suppliers that it would like to produce 3 million a month starting in the fourth calendar quarter of 2010.

It's likely not coincidental that less than a week ago, iPad shipping times for new orders from apple.com improved to 24 hours. For months, customers had to wait an estimated 7 to 10 days, as Apple was surprised by strong demand for the device when it launched in April.

Officials with the company admitted they were initially caught off guard by the demand for the iPad after it launched, and they were unsure when they would be able to satisfy that demand. Chief Operating Officer Tim Cook noted that the iPad is not taking a typical early adopter curve, and already has a "very big" market.

"We want to take full advantage of it, and so we are investing enormous time and resources in increasing our capability in getting iPad out to as many people as we can," Cook said in July.

Despite strong demand, Huberty reiterated that the iPad has not cannibalized sales of Macs. She noted that U.S. Mac sales are tracking up 20 to 25 percent year over year, and have been accelerating in recent weeks.

In June, it was estimated that Apple was producing a total of 1.2 million iPads per month. That was up from 800,000-900,000 units in May, 700,000 units in April, 470,000 units in March, and 300,000 in February. At the time, it was projected that Apple could produce as many as 2.5 million per month in time for the 2010 holidays.
post #2 of 131
And still we haven't got them in Norway or Scandinavia (except for the vacation shoppers). Also 3 weeks waiting time for iPhone 4 on Apple Store (5 weeks if you buy it through Telenor, the biggest cell network).
post #3 of 131
After OS 4.2 is released, it will be open season for the holiday gifts and corporate demands for the iPad. When large corporations go into full deployment next year, massive production capacity will be needed.

Go Apple... Go, go, go...
post #4 of 131
In theory this should quieten the doubters who claimed that the reason for the 'catch up' was a decline in demand. Apple are working ahead to launch in more countries and still seem to be only just matching demand in those countries where the pad is available.

I wonder where the analysts, experts (and trolls) who claimed this device would struggle to sell more than two million units in its first year are now?

No camera, no flash, no {insert port, service or function here}...

That's the theory at least, but wait for the posts below where people continue to complain about the device, tell us why we shouldn't like it, shouldn't buy it, list what it can't do and why we're being forced to buy it in the millions.

Apple are doomed!®
post #5 of 131
So Techsud aka Blackintosh was right ... it is a total failure. It will never catch on as it has too few geek featues. Of course with Windows 7 mobile the HP Slate and MS dual screen slate will rule. I should sell all my AAPL and run for the hills ... wait a minute ... 2 or 3 million a month??
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post #6 of 131
Hmmm it doesn't quite make sense to me.

If Apple was making one million a month but selling two million, wouldn't there be a 30 day delay after one month, a 60 day delay after two months, etc.?

It wouldn't be possible to stay consistently 7 days behind if they always sold more than they made.
post #7 of 131
Quote:
Originally Posted by AppleSauce007 View Post

After OS 4.2 is released, it will be open season for the holiday gifts and corporate demands for the iPad. When large corporations go into full deployment next year, massive production capacity will be needed.

Go Apple... Go, go, go...

2011 should prove to be amazing as no doubt more sophisticated iOS products appear (I suspect the dual OS X / iOS iMac is a real R&D project).
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Been using Apple since Apple ][ - Long on AAPL so biased
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post #8 of 131
All this, and without a camera no less. I can't help believing that IF a camera is ever added it will be a distinct model line. Pretty sure that the camera is unwelcome in many enterprise settings.
post #9 of 131
Quote:
Originally Posted by iGuessSo View Post

Hmmm it doesn't quite make sense to me.

If Apple was making one million a month but selling two million, wouldn't there be a 30 day delay after one month, a 60 day delay after two months, etc.?

It wouldn't be possible to stay consistently 7 days behind if they always sold more than they made.

Seems obvious to me the ramp up exceeded demand sufficiently to catch up and now, hopefully, should stay roughly equal as demand grows.
Been using Apple since Apple ][ - Long on AAPL so biased
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Been using Apple since Apple ][ - Long on AAPL so biased
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post #10 of 131
Quote:
Originally Posted by RicMac View Post

All this, and without a camera no less. I can't help believing that IF a camera is ever added it will be a distinct model line. Pretty sure that the camera is unwelcome in many enterprise settings.

I wondered this but has the iPhone been kept out of enterprise due to the camera? Of course Apple could offer a with and without version of the iPad.
Been using Apple since Apple ][ - Long on AAPL so biased
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Been using Apple since Apple ][ - Long on AAPL so biased
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post #11 of 131
The iPad plus the update in November sounds pretty sick, still not available in my country on the authorized dealer but on the street is available but darn expensive ($750 cheapest one)
I guess I will wait until it gets facetime, for home use will be a hit with the family, will need to add the keyboard/dock! and will be enough to everyone check mails, browse, games and etc in a cheaper way than buying the cheapest iMac.
post #12 of 131
Quote:
Originally Posted by iGuessSo View Post

Hmmm it doesn't quite make sense to me.

If Apple was making one million a month but selling two million, wouldn't there be a 30 day delay after one month, a 60 day delay after two months, etc.?

It wouldn't be possible to stay consistently 7 days behind if they always sold more than they made.

Who said apple were selling two million a month, and how do you know how big the stockpiles were before launch day? They weren't constantly 7 days behind, the shipping dates are always estimates and I guess a week covered them if the delay was anything up to that...
post #13 of 131
So say 4 million April through July. Then 4 million August September. And 9 million October through December for a total of 17 million deployed by January. That's a pretty strong lead for any competitors to try and overcome.

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post #14 of 131
Quote:
Originally Posted by Multimedia View Post

So say 4 million April through July. Then 4 million August September. And 9 million October through December for a total of 17 million deployed by January. That's a pretty strong lead for any competitors to try and overcome.

Yup and also incontrovertible proof that Apple got this right, that the average consumer wants it and that people are happy with it (haven't seen any media screams about failures or issues with this...)

That it's getting an upgrade with new features and functionality free of charge, is great - the icing on the cake for current users.

Although there will be still be people posting complaints here. It doesn't have 8 gigs of RAM and you can't run photoshop on it, no flash, no camera (and on and on and on!).

post #15 of 131
Quote:
Originally Posted by plokoonpma View Post

The iPad plus the update in November sounds pretty sick, still not available in my country on the authorized dealer but on the street is available but darn expensive ($750 cheapest one)
I guess I will wait until it gets facetime, for home use will be a hit with the family, will need to add the keyboard/dock! and will be enough to everyone check mails, browse, games and etc in a cheaper way than buying the cheapest iMac.

I think you might be disappointed if you buy the device as a family computer - no multiple user accounts would leave no email privacy, and the iOS mail app quickly becomes cluttered with multiple accounts. This is designed primarily as a personal device, and I'm not sure it would work as a family computer - I'd LOVE to be proved wrong, but think twice before making your purchase for this reason. Good luck!

post #16 of 131
Quote:
Originally Posted by nkhm View Post

Who said apple were selling two million a month, and how do you know how big the stockpiles were before launch day? They weren't constantly 7 days behind, the shipping dates are always estimates and I guess a week covered them if the delay was anything up to that...

The story did: "Analyst Katy Huberty with Morgan Stanley indicated that iPad builds recently increased to 2 million per month, up from the previous number of just 1 million a month. Apple allegedly indicated to its suppliers that it would like to produce 3 million a month starting in the fourth calendar quarter of 2010." This is assuming that Apple builds approximately the same number they sell.

Don't everyone get in a giant huff over this, it's just something I've never understood. For example, if you call to get cable or something installed, it's always a week out. If it's consistently one week out for years, why can't they just put some overtime in and catch up? If it's a case of more orders every day than they can handle, wouldn't it just get worse and worse?

I think digitalclips hit it - it's not a flat one million and then suddenly two million. They ramped up. So the story is misleading.
post #17 of 131
Some people will always try to bring a good thing down...It's an inherently human condition...

...but let's not kid ourselves either: Resistance is absolutely futile. I just hope Steve Jobs is in good health, so that he can truly enjoy his success.

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post #18 of 131
I'd love to see some analysis of which demographics are fuelling this demand. Young? Old? Consumer? Enterprise? American? Global?

If nothing else, they seem to be the default prize for most competitions these days.
post #19 of 131
It might totally be because i don't live in a big city, but I rarely see iPads in the wild. Makes me think that the iPad is primarily an at home device.
post #20 of 131
Quote:
Originally Posted by nkhm View Post

In theory this should quieten the doubters who claimed that the reason for the 'catch up' was a decline in demand.

The same "doubters" called Jobs an outright liar in a previous thread when he questioned Android activations so why would they be quieted over this. In the "doubter" mind Apple is an illusion, a phantom, an invention that simply doesn't exist.
post #21 of 131
Quote:
Originally Posted by iGuessSo View Post

Hmmm it doesn't quite make sense to me.

If Apple was making one million a month but selling two million, wouldn't there be a 30 day delay after one month, a 60 day delay after two months, etc.?

It wouldn't be possible to stay consistently 7 days behind if they always sold more than they made.

It's good to read with that sort of skepticism and questioning. But I think in this case the answer's sort of simple: production doesn't run merrily along at 1 million per, and then suddenly jump overnight to 2 per. Instead, productivity increases gradually as more components are ordered and acquired and production lines and workers are added. Think of a gradually ascending line graph representing production (as a similar graph reps demand/sales). Overlaid, they converge. Sometimes prod'n will exceed sales in prep for expected future demand; other times sales will surpass prod'n and there may be waiting periods while (increasing) prod'n catches up. But both are increasing gradually. The 1 per-to- 2 per jump in sales isn't an overnight event either.

The amazing thing to me is that apple anticipates new product demand so well.
post #22 of 131
Printing is great. Now give people the ability to setup and use an iPad without owning a computer, just like Apple TV.

Than I can recommend it to my Aunt.
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post #23 of 131
Quote:
Originally Posted by iGuessSo View Post

It might totally be because i don't live in a big city, but I rarely see iPads in the wild. Makes me think that the iPad is primarily an at home device.

My son sees them all over the place at airports and on planes when he travels on business. No, they are not primarily an at home device.
post #24 of 131
Isn't it long past due for Apple to give us more sales figures for the iPad? IIRC, the last time they said anything was when it passed the 3 million mark, and that was months ago. Have they broken 6 or 7 million? Inquiring minds want to know.
post #25 of 131
Quote:
Originally Posted by Ireland View Post

Printing is great. Now give people the ability to setup and use an iPad without owning a computer, just like Apple TV.

Than I can recommend it to my Aunt.

Just buy her an Android tablet. They'll be perfect and do everything.
post #26 of 131
Quote:
Originally Posted by iGuessSo View Post

Hmmm it doesn't quite make sense to me.

If Apple was making one million a month but selling two million, wouldn't there be a 30 day delay after one month, a 60 day delay after two months, etc.?

It wouldn't be possible to stay consistently 7 days behind if they always sold more than they made.

There are probably two reasons for increasing the numbers made. One, they expect demand to continue to increase as in shipping to more countries. Two, there is this little thing called the holiday season coming up. You are looking at the past. Apple is planning for the near future.
post #27 of 131
Quote:
Originally Posted by iGuessSo View Post

The story did: "Analyst Katy Huberty with Morgan Stanley indicated that iPad builds recently increased to 2 million per month, up from the previous number of just 1 million a month. Apple allegedly indicated to its suppliers that it would like to produce 3 million a month starting in the fourth calendar quarter of 2010." This is assuming that Apple builds approximately the same number they sell.

Don't everyone get in a giant huff over this, it's just something I've never understood. For example, if you call to get cable or something installed, it's always a week out. If it's consistently one week out for years, why can't they just put some overtime in and catch up? If it's a case of more orders every day than they can handle, wouldn't it just get worse and worse?

I think digitalclips hit it - it's not a flat one million and then suddenly two million. They ramped up. So the story is misleading.

That was an estimate from an 'analyst' (beware!). Manufactured units != units sold. Most manufacturers use an estimated delivery time to cover their backs. My iMac delivery was estimated at three weeks, but arrived within five days. You're dealing with estimates, comfortable delivery margin statements and speculation from analysts - it's why the seemingly simply math doesn't work.

post #28 of 131
Quote:
Originally Posted by Ireland View Post

Printing is great. Now give people the ability to setup and use an iPad without owning a computer, just like Apple TV.

Than I can recommend it to my Aunt.

Buy it in store - Apple will activate for you free of charge (and with a smile) then you never need a computer again, likewise for the upgrade (unless this is delivered wirelessly over itunes - not sure on this one).
post #29 of 131
Quote:
Originally Posted by Kolchak View Post

Isn't it long past due for Apple to give us more sales figures for the iPad? IIRC, the last time they said anything was when it passed the 3 million mark, and that was months ago. Have they broken 6 or 7 million? Inquiring minds want to know.

Nope, they make their quarterly statements, they don't normally comment on units sold or activations other than at keynotes etc. The last keynote was about the ipads, apple TV and ios, so i'm sure the headlines are being held back for the next iPad event, or until it's an impressive round figure (10 million by christmas anyone?).
post #30 of 131
Quote:
Originally Posted by lkrupp View Post

Just buy her an Android tablet. They'll be perfect and do everything.

Except for running Android and being full of malware and stealing her data. Have you used an android device?
post #31 of 131
Quote:
Originally Posted by RicMac View Post

All this, and without a camera no less. I can't help believing that IF a camera is ever added it will be a distinct model line. Pretty sure that the camera is unwelcome in many enterprise settings.

No, the camera would just be an additional feature, wouldn't create a whole new product line (like the new cameras on the iPod touch did not create a distinct new product line). That would be like adding a sunroof to a car and calling it an entirely new model.

Note that enterprises should be more concerned with cellphones. All smartphones have cameras as do many feature phones. Cellphones -- with their smaller size -- can be surreptitiously used and are a far greater threat to corporate security. Most gyms have banned cellphones for years.
post #32 of 131
Quote:
Originally Posted by cvaldes1831 View Post

No, the camera would just be an additional feature, wouldn't create a whole new product line (like the new cameras on the iPod touch did not create a distinct new product line). That would be like adding a sunroof to a car and calling it an entirely new model.

Note that enterprises should be more concerned with cellphones. All smartphones have cameras as do many feature phones. Cellphones -- with their smaller size -- can be surreptitiously used and are a far greater threat to corporate security. Most gyms have banned cellphones for years.

Not an entirely new model - a different variant of the line-up - just like the sun-roof or other optional extras when buying a car.

if a camera was introduced across the board, these will have to disappear from my studio - i wonder how many others would have similar problems?
post #33 of 131
Quote:
Originally Posted by Ireland View Post

Printing is great. Now give people the ability to setup and use an iPad without owning a computer, just like Apple TV.

Than I can recommend it to my Aunt.

Obviously, apple TV will upgrade itself alone, and it is an iOS device..
Si it's an important step in the direction you (and I) want!
post #34 of 131
Quote:
Originally Posted by cvaldes1831 View Post

No, the camera would just be an additional feature, wouldn't create a whole new product line (like the new cameras on the iPod touch did not create a distinct new product line). That would be like adding a sunroof to a car and calling it an entirely new model.

Note that enterprises should be more concerned with cellphones. All smartphones have cameras as do many feature phones. Cellphones -- with their smaller size -- can be surreptitiously used and are a far greater threat to corporate security. Most gyms have banned cellphones for years.

Yup, and would do the same with the iPad if it got a camera...
post #35 of 131
If Steve Ballmer, Bill Gates and their beloved Windows fanboys aren't crying now, then I don't know what would make them cry. I think Microsoft investors will be crying next. Two million iPads being sold a month is nothing to sneeze at. People keep saying "iPad=meh". Damn. In any business, that would be a very impressive number. I'm an Apple diehard of almost thirty-odd years and I can't even imagine Apple selling 3 million iPads a month. That is some awesome number. The main thing I hope about all this is that it is seriously cutting into netbook OEM Windows licenses.

With Microsoft not selling any mobile OS, weak corporate Windows sales and now with consumers possibly switching from Windows netbooks to tablets of all sorts, Microsoft has got to be reeling. I wonder if Ballmer is still mouthing off about rounding errors. Tablets would seem to be getting into Microsoft's kitchen and there is no way in the world consumers are going to be buying any Windows 7 Desktop tablet in quantity. Absolutely no way at all. Apple and Google have effectively cut the bottom end out of Microsoft Windows sales. It's not going to take down Microsoft quickly, but they have to be scared if corporations start shifting to tablets in place of Windows laptops.

I want to live to see the day that pundits shut the hell up about there needing to be a Windows-licensed computer on every man, woman and child's desk in the world. That is just pure crap. It was never necessary and it never will be. It might have been Bill Gates dream of greed and control, but that's about as far as it went. If Apple can do an end run around Windows in corporations using tablets, then that will truly be an epic event.
post #36 of 131
Quote:
Originally Posted by iGuessSo View Post

It might totally be because i don't live in a big city, but I rarely see iPads in the wild. Makes me think that the iPad is primarily an at home device.

Yeah, it's probably because you don't live in a big city.

I see iPads at cafes, libraries, airports, trains, airplanes, and amusingly in a lot of business meetings these days. My guess is that they will be all over the local universities this fall.

Really anyplace you might see a notebook computer. You won't see anyone whip out a computer while walking down the street, nor an iPad. It's not a smartphone.
post #37 of 131
Quote:
Originally Posted by Ireland View Post

Printing is great. Now give people the ability to setup and use an iPad without owning a computer, just like Apple TV.

Than I can recommend it to my Aunt.

Very good point!

I believe it will happen... maybe with iOS 4.2 in November.

To make it possible, there must be a substitute for the subtle, but necessary, things that plugging into a computer provides-- things like:

-- initial device setup
-- internet access setup
-- email setup
-- backup and sync
-- keep track of apps and content installed
-- notify and install app updates, and content updates
-- ability to delete then reinstall an app
-- ability to manage more apps than can be displayed on the fixed number of icon pages
-- repository/backup for content created by the device (game scores, calendar, documents, mail, etc.)
-- ability to backup/restore/upgrade/reconfigure device

There are, likely, others.

I think that a simple app on the device combined with MobileMe could accomplish all of this in a way that would be non-threatening to someone without access to a computer.

.
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post #38 of 131
Don't want to repeat any of my previous points so will only focus on printing. Printing is a central feature to making iPads genuinely better then net books and I think it will boost the demand amongst certain businesses:

Printing Alone: Doctor can hit a few buttons and have the prescription name appear on the tab that will be printed out. He can even type in a few notes without having a need for keyboard or stand, because it will only be a few lines of text. (no more guessing what he wrote)


Stylus + Printing: Engineer or architect can draw a quick design sketch when inspiration hits, and print it at home without the need to email things.

Keyboard Case + Printing: You can now type for a long period of time. Since iPad has a long battery life it would outlast your Macbook on a flight, so if you need to finish up your documents on the flight you can, and you will even be able to print it in the nick of time if wireless printer setup if fairly easy on this thing.

Is gonna be the last time I comment on iPad till V2, unless something really major happens.
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post #39 of 131
Quote:
Originally Posted by nkhm View Post

Buy it in store - Apple will activate for you free of charge (and with a smile) then you never need a computer again, likewise for the upgrade (unless this is delivered wirelessly over itunes - not sure on this one).

You still need a computer for firmware updates on all iOS devices. Wireless sync from Apple does not exist unless you jailbreak and won't exist for some time.

Quote:
Originally Posted by nkhm View Post

Except for running Android and being full of malware and stealing her data. Have you used an android device?

To be fair have you? Or are you just spouting off from what you have read online. I am sure there are Android users that know what they are doing (and who to trust) and have no problems with malware.

Oh and as a user on this forum it would be so nice if you can learn to use "multi quote" instead of posting back to back to back to back replies. It is seen as being courteous to others that use this forum, just like what I've done in this reply. Thanks so much.

EDIT: If you do understand this you just come off as a post whore.
post #40 of 131
now if only they could make enough iPhones that I could actually get one...
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