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iPad 2 constraints 'significantly improved' as Apple's supply woes ease

post #1 of 15
Thread Starter 
iPad 2 production restraints that affected Apple last quarter are said to have "significantly improved," allowing for improved availability of the in-demand tablet.

Analyst Shaw Wu with Sterne Agee said Friday that Apple has found better yields in iPad 2 production through retooling and conversion of more overseas production lines. These changes have gone a long way in addressing the supply issues Apple experienced last quarter.

But he also cautioned that Apple is along way from meeting its internal goals for iPad 2 production. Previous rumors suggested Apple could ship as many as 45 million iPad 2 units this year, though predictions have dropped since Apple's last quarter fell short of expectations for iPad sales.

"From our understanding, [Apple] still has a ways to hit the [second half] goal of 3-4 million units per month but getting closer," Wu wrote.

Accordingly, Wu has increased his estimates for iPad sales in the current, third fiscal quarter of 2011 for Apple. He now sees the company selling 6.8 million iPads, up from his previous prediction of 5.9 million.

Wu also increased his estimated iPhone sales to 17 million, up from 16 million. He said iPhone demand appears to be holding up better than expected, thanks to strong adoption of the white iPhone 4 and strong sales on Verizon.



Wu also increased his projected Mac sales to 3.9 million from the quarter, up from 3.83 million. He is also assuming a new, higher gross margin of 39 percent, increased from 38.3 percent, due to improved iPad yields and higher iPhone sales.

Finally, he's also increased Sterne Agee's 12-month price target for AAPL stock to $460, up from the previous prediction of $445.
post #2 of 15
I for one would like to see these AAPL price predictions start to manifest themselves! It's as if something is artificially holding AAPL down.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #3 of 15
"From our understanding, [Apple] still has a ways to shit the [second half] goal of 3-4 million units per month but getting closer," Wu wrote.

They could shit the goals indeed if these measures don't hold up!
post #4 of 15
Quote:
Originally Posted by AppleInsider View Post


"From our understanding, [Apple] still has a ways to shit the [second half] goal of 3-4 million units per month but getting closer," Wu wrote.

That's pretty ... crappy understanding of the situation. I mean ... holy ship!
post #5 of 15
"From our understanding, [Apple] still has a ways to shit the [second half] goal of 3-4 million units per month but getting closer," Wu wrote.

Apple shits 90% of tablets. RIM and others are responsible for only 10% of the shit.

Oh, how we can go on
post #6 of 15
More useless information about Apple production and target pricing.

Apple will produce whatever it can produce and a week or two of internal changes could make all the difference in the world for production numbers. Apple's share price is being artificially locked within a certain range and there isn't anything that's going to change that. Setting target prices is absolutely of no use for Apple shareholders if the value is being determined by hedge funds and day traders. \
post #7 of 15
Quote:
Originally Posted by digitalclips View Post

I for one would like to see these AAPL price predictions start to manifest themselves! It's as if something is artificially holding AAPL down.

There are quite a few things holding AAPL down -- expiring options. From tradershuddle.com:
Apple (NASDAQ:AAPL), the maker of iPads and iPhones, was falling 0.16% to $340 in pre-market. The stock faces resistance to the upside from its declining 50day moving average, currently at $342.69. The 50day resistance will likely be tested by the stock during the session, the level is key to be broken to the upside in order for the stock to start building momentum ahead of its Worlds Development Conference scheduled for June 6th thru June 10th. Apple signed a cloud-music licensing deal with EMI Group Ltd. and is close to completing agreements with Universal Music Group and Sony Music Entertainment, with the company looking to have licensing deals ready before a big push by the company of its iCloud service at the Development Conference. In todays session due to options expiration Apple will likely gravitate towards the $340 level, which is the options max pain, in which most of the Apple option contracts will expire worthless.
post #8 of 15
Quote:
Originally Posted by SixPenceRicher View Post

There are quite a few things holding AAPL down -- expiring options.

Options gaming is getting pretty abusive. It was bad when it always killed January numbers, but now it is every Friday with the cursed weekly options!

I never thought I would be one to say this... but it is time for AAPL to have a 10:1 split. That is the only way to beat this stupid manipulation to get options to the Max Pain point.
post #9 of 15
And yet another incident that may affect iPad supply, altho that's the least important aspect. Thoughts are with those families who lost loved one's in this accident.

http://www.engadget.com/2011/05/20/e...al-could-affe/
melior diabolus quem scies
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melior diabolus quem scies
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post #10 of 15
Quote:
Originally Posted by aaarrrgggh View Post

Options gaming is getting pretty abusive. It was bad when it always killed January numbers, but now it is every Friday with the cursed weekly options!

I never thought I would be one to say this... but it is time for AAPL to have a 10:1 split. That is the only way to beat this stupid manipulation to get options to the Max Pain point.

Please explain how that would stop manipulation. Won't the max pain points just adjust
to lower strike prices of options?
post #11 of 15
Ordered mine on 5/3. It finally shipped today for delivery on the 25th. Definitely not speedy.
post #12 of 15
Almost 40% profit margin?

Consumers are getting ripped off like crazy!

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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post #13 of 15
Quote:
Originally Posted by Galbi View Post

Almost 40% profit margin?

Consumers are getting ripped off like crazy!

Yeah! They should buy those much cheaper Android tablets! Oh, wait....

BTW, "gross margins", as mentioned in the story, are not the same as "profit margins."
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #14 of 15
Quote:
Originally Posted by addabox View Post

BTW, "gross margins", as mentioned in the story, are not the same as "profit margins."

A common misunderstanding too.

http://www.investorwords.com/2245/gross_margin.html
melior diabolus quem scies
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melior diabolus quem scies
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post #15 of 15
Quote:
Originally Posted by quinney View Post

Please explain how that would stop manipulation. Won't the max pain points just adjust
to lower strike prices of options?

My thought is that the pressure can't be maintained in the same way as the percentage delta in gaps between strike prices are smaller. It also makes options investing less attractive to the retail investor.
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AppleInsider › Forums › Mobile › iPad › iPad 2 constraints 'significantly improved' as Apple's supply woes ease