or Connect
AppleInsider › Forums › Mobile › iPad › Suppliers delivered 2.4M-2.6M iPad 2 units to Apple in March - report
New Posts  All Forums:Forum Nav:

Suppliers delivered 2.4M-2.6M iPad 2 units to Apple in March - report

post #1 of 27
Thread Starter 
Perhaps offering an indication of how many iPad 2 units were sold at launch, a new report claims Apple received between 2.4 million and 2.6 million of the hot-selling device from suppliers in the month of March.

A "conservative estimate" of iPad 2 supply going forward sees Apple taking delivery of 4 million to 4.5 million iPad units a month, totaling more than 12 million units in the second quarter of 2011, supply chain sources told DigiTimes. Upstream touch panel makers reportedly indicated that sales of the iPad 2 are running at a faster rate than the first-generation device released in April of 2010.

Those sources also reportedly indicated that the "key" for Apple and other tablet makers will be the supply of "cover lenses for touch panel modules." For Apple to meet its goals in building iPad 2 units in 2011, it will need a steady supply of components from touch panel makers.

In January, Apple revealed that it had invested $3.9 billion into secret long-term component contracts. Though the company would not reveal which components it had inked a deal to secure, it has been speculated that constrained hardware like the glass capacitive touch panels found on the iPad could play a part.

Given regular stock-outs of the iPad 2 in March, Apple presumably sold through the entirety of shipments it received. That would mean Apple sold at least 2.4 million units, if component suppliers' estimates are accurate.

For comparison, the first-generation iPad took 28 days to reach its first million sales. Initially, only the Wi-Fi model was on sale for the first month in the U.S., while both the Wi-Fi-only and 3G-capable iPad 2 models went on sale at the same time in 2011. In addition, Apple began international sales of the iPad 2 in 25 countries in late March, faster than the rollout of the first-generation iPad.
post #2 of 27
Quote:
Originally Posted by AppleInsider View Post

Given regular stock-outs of the iPad 2 in March, Apple presumably sold through the entirety of shipments it received. That would mean Apple sold at least 2.4 million units, if component suppliers' estimates are accurate.

If Apple was delivered 2.4 M in March, even with the sell out, they have some
amount of channel inventory - i.e. it takes some time for stock to make it from the back door of Foxconn to the shelves of the stores. So realistically, I would say that most likely they sold about 2M or a little more.
post #3 of 27
We know exactly how many they sold: as many as they could make. Good luck, competition.
Apple has no competition. Every commercial product which competes directly with an Apple product gives the distinct impression that, Where it is original, it is not good, and where it is good, it...
Reply
Apple has no competition. Every commercial product which competes directly with an Apple product gives the distinct impression that, Where it is original, it is not good, and where it is good, it...
Reply
post #4 of 27
Quote:
Originally Posted by Mac Voyer View Post

We know exactly how many they sold: as many as they could make. Good luck, competition.

first, how many could they make? second... what competition?
post #5 of 27
Quote:
Originally Posted by OllieWallieWhiskers View Post

what competition?

Windows 9 tablet with dual styluses.
post #6 of 27
That info might explain some of the "crushing demand" that AI has mentioned. Just way too few units available, somewhat validating rumors that Apple did not have sufficient stock of some components to meet initial launch needs. Also tends to support other mentions that Apple rushed out the iPad2 launch before it was originally planned to make sure they beat competitors to market. Obviously much fewer than the 5-8 million units sold to date that I've seen bandied about by various pundits and analysts including Fortune Magazine. http://tech.fortune.cnn.com/2011/03/...id-apple-sell/

All this if the reports are true of course. With nothing official from Apple, it's still all speculation, tho with Apple all too happy, even anxious, to announce launch sales with last years original iPad, I find it odd for them to be so quiet this year.

EDIT: Another read of the Fortune article shows that analysts surveyed were including both the original and v2 iPads in their estimates. The lower range may not be so far off then IMO.
melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #7 of 27
Quote:
Originally Posted by jmmx View Post

If Apple was delivered 2.4 M in March, even with the sell out, they have some
amount of channel inventory - i.e. it takes some time for stock to make it from the back door of Foxconn to the shelves of the stores. So realistically, I would say that most likely they sold about 2M or a little more.

It takes 3 days at most. 2 days to major locations. Apple is able to designate ship to locations based on sales volume at a shop in under a week. They can't adjust volume manufactured so nimbly though.
you only have freedom in choice when you know you have no choice
Reply
you only have freedom in choice when you know you have no choice
Reply
post #8 of 27
Quote:
Originally Posted by matrix07 View Post

Windows 9 tablet with dual styluses.

Add PlayBook with a keyboard
post #9 of 27
Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.
post #10 of 27
Quote:
Originally Posted by AppleInsider View Post

Perhaps offering an indication of how many iPad 2 units were sold at launch, a new report claims Apple received between 2.4 million and 2.6 million of the hot-selling device from suppliers in the month of March.

My guess is they'll get to 10 million/month by the end of the year. Figure an average of 7 million/month for the last nine months of the year and five to six million through March. That'd be in the neighborhood of 65 million this year, or 85 million in total circulation.

That's a phenomenal installed base.
post #11 of 27
Quote:
Originally Posted by LTMP View Post

Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.

I would think they would have have been ramping up for several weeks, if not months. So if suppliers can ship 2.5 mil in a month, and they did that for at least the month prior to lunch, there's your 5 mil.
post #12 of 27
Quote:
Originally Posted by LTMP View Post

Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.

This is exactly what I was thinking. As they ramp up production, they don't instantly start at several million a month. It takes a while to get there! Theoretically, they were building some inventory for the launch from the beginning of the year through the ramp up.

Of course, it is possible that all of that inventory was held by the manufacturers until launch, in which case it could possibly be counted as March deliveries... Anybody know how this is usually reported?
Progress is a comfortable disease
--e.e.c.
Reply
Progress is a comfortable disease
--e.e.c.
Reply
post #13 of 27
Quote:
Originally Posted by LTMP View Post

Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.

Quite possibly.


Quote:
Originally Posted by Gatorguy View Post

That info might explain some of the "crushing demand" that AI has mentioned. Just way too few units available, somewhat validating rumors that Apple did not have sufficient stock of some components to meet initial launch needs. ... Also tends to support other mentions that Apple rushed out the iPad2 launch before it was originally planned to make sure they beat competitors to market.

Keep reaching.
"We're Apple. We don't wear suits. We don't even own suits."
Reply
"We're Apple. We don't wear suits. We don't even own suits."
Reply
post #14 of 27
1) That won't be enough to shake $150 Kinect with8M units in 60 days from it's spot as fastest selling, even though MS would trade places with Apple if they could.

2) I wonder why they haven't released any unit sales numbers. They have no competition to combat in the media right now and it's not like they can't sell them all as is, but it would be nice to have an official idea of the unit sales.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #15 of 27
. . .
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #16 of 27
so about 7 million iPad and iPad2s sold in the january quarter (from the fortune article), roughly the same as the december quarter, and production ramped up to sell around 12 million in the current quarter. That should put apple on track to sell about 50 million iPads this year.
post #17 of 27
iPad 2 came with iOS 4.3 preinstalled. iOS 4.3 only went gold just before launch so I doubt Apple had been stocking up on iPad 2 for months.

Please update the AppleInsider app to function in landscape mode.

Reply

Please update the AppleInsider app to function in landscape mode.

Reply
post #18 of 27
Quote:
Originally Posted by jd_in_sb View Post

iPad 2 came with iOS 4.3 preinstalled. iOS 4.3 only went gold just before launch so I doubt Apple had been stocking up on iPad 2 for months.

I see what you're saying but there are a couple thins to consider. 1) Apple locked in the features of iOS 4.3 well before it wet GM and had a specific team work to make sure the drivers and other aspects were splod independent of the standard 4.3 release. (we cam tell this by looking at the build number) 2) Apple did have the iPad 2's ready and waiting to be flashed witg the GM of 4.3, then to be packaged.

I'm not saying you're wrong, as I would have no info either way, but I think there are things to consider between building the iPad 2 and installing iOS.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #19 of 27
Quote:
Originally Posted by alandail View Post

so about 7 million iPad and iPad2s sold in the january quarter (from the fortune article), roughly the same as the december quarter, and production ramped up to sell around 12 million in the current quarter. That should put apple on track to sell about 50 million iPads this year.

Pretty much my thinking as well, tho I'd go just a tad lower with 40M for the calendar year, perhaps 32-36M combined iPad1&2 for the "Apple year". I personally don't think their suppliers be able to produce 4M units a month till sometime later in the year. But absolutely nice numbers in any case and one Android or WM7 tablet builders will be envious of.
melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #20 of 27
Quote:
Originally Posted by LTMP View Post

Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.

Probably not. They are using JIT. They don't even go to a warehouse, they go directly into the channel.

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #21 of 27
Quote:
Originally Posted by mstone View Post

Probably not. They are using JIT. They don't even go to a warehouse, they go directly into the channel.

I doubt that they relied on their JIT system for the iPad 2 launch. I would imagine they built up some inventory and then shot it to all of the retailers for launch day.
na na na na na...
Reply
na na na na na...
Reply
post #22 of 27
If Apple shifted 2M units in 3 weeks Samsung and Motorola must be going fucking bananas. They would suck some serious dick to get to shift that many units of their tablets.
post #23 of 27
Quote:
Originally Posted by mstone View Post

Probably not. They are using JIT. They don't even go to a warehouse, they go directly into the channel.

It is obvious that Apple doesn't use JIT for product launches as no manufacturer goes from zero units to making millions (iPhone 3/3g/3gs/4, iPad1/2) of units in a month's time. After launch JIT should work fine.
Artificial intelligence is no match for natural stupidity.

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools."
Reply
Artificial intelligence is no match for natural stupidity.

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools."
Reply
post #24 of 27
Finally received mine two days ago. Amazing device. Loving it more every day. I loaded all my technical .PDF manuals into iBooks. Makes such a great reader on quiet nights! The only one minnow drawback is that I got spoiled by my iPhone4's Retina display. I went in knowing that. I look forward to the day that comes!
post #25 of 27
Quote:
Originally Posted by solipsism View Post

I wonder why they haven't released any unit sales numbers. They have no competition to combat in the media right now and it's not like they can't sell them all as is, but it would be nice to have an official idea of the unit sales.

My guess is that they were supply constrained until about now, and they want to get the spigots full open before they mention any numbers-- you know, like the first two weeks or whatever might appear underwhelming given shortages, but with another month of full on sales they'll be able to announce huge numbers.
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
Reply
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
Reply
post #26 of 27
Most likely manufacturing was ramping up all of February and maybe even before that. I would not be surprised to find out that they had at least 2 million on hand for launch maybe even more. Apple could have easily gone through 4 million iPads in March.

Of course that figure is a little high and maybe hard for some to swallow but I don't see it as unreasonable. One has to only look at the number of idiots that stood in line buying iPads to realize that Apple must have had thousands available in it's stores (per store) upon launch. They probably had 200,000 into customer hands on launch day.
Quote:
Originally Posted by LTMP View Post

Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.

Five million in the first month would be outstanding and frankly a big surprise. Then again my estimate of four million in a month would be hard for some to swallow. I do think many people will be shocked when the final sales figures are announced. IPad 2 could easily end up being the most successful product launch ever when it comes to electronics.
post #27 of 27
Quote:
Originally Posted by OllieWallieWhiskers View Post

first, how many could they make? second... what competition?

It appears that there's a new kid on the block: Cisco! They've got something called the Cius that's an Android 7" product. Info here. I feel somewhat sorry for a great outfit like Cisco to feel like they need to enter the tablet business with the rest of the wannabes. But like IBM in the past, businesses will buy Cisco.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPad
  • Suppliers delivered 2.4M-2.6M iPad 2 units to Apple in March - report
AppleInsider › Forums › Mobile › iPad › Suppliers delivered 2.4M-2.6M iPad 2 units to Apple in March - report