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Apple reflecting drastic improvements in iPad 2 availability

post #1 of 20
Thread Starter 
For the first time since its launch in early March, customers in the market for a new iPad 2 can order it direct from Apple and have it shipped to their doorstep in a week or less, the company disclosed on its online store Thursday.

Between Wednesday evening and Thursday morning, lead times for the market-leading tablet device dropped to just 3-5 days from 1-2 weeks on the Cupertino-based company's online store. That's a marked improvement from overwhelming backlog of 4-5 weeks customers saw during the iPad 2's first month on the market.

Ironically, the improvements in availability come in the face of a report from DigiTimes, which claimed Thursday Apple's share of the tablet market in June slipped to 50% from its average of 60-70% due to supply shortages.

Alongside the U.S., shipping times for the tablet also improved through Apple's direct international sales channels, however the company still has a hill to climb before the device enters into a true supply and demand balance.

Spot shortages of the iPad 2 remain throughout the company's indirect sales channels and Apple continues to impose a strict limit of 2 units per customer through all of its online shops.

In addition to sheer demand, Apple has faced several challenges in ramping production of its new tablet. The device launched just days before Japan's natural disaster, which shut down operations at several of the company's component suppliers.

But even with a steady supply of the parts needed, building iPad 2's has been incredibly challenging for Apple's manufacturing partner Foxconn, Chairman Terry Gou said at a recent investor meeting.



As such, the contract electronics assembler’s profits have lagged behind those of Apple because the devices are “very difficult to make,” he said, adding that his company is continuously learning ways to make the products more efficiently.

Foxconn recently implemented measures to assemble iPads more efficiently, the benefits of which are expect to further improved availability of the devices during 'the second half of this year and next year.'

As it stands, build plans coming into Foxconn for the third calendar quarter of 2011 suggest the manufacturer has been commissioned to build anywhere between 14 and 15 million iPad 2 units over the next three months.
post #2 of 20
Why still limit to 2?
post #3 of 20
The article in Digitimes, while dubious, did not mean a drop to 50 percent in the overall market, but a drop in the Taiwan domestic tablet market.

the article cites a 35,000 total number of tablets. That alone should have given you a clue. 35K of a 15 million unit market is not even a rounding error.
post #4 of 20
I had ordered one late last week and Apple was telling me that I wouldn't get it until the 20th. Then I got an email from Apple last night saying it's coming this Monday! Straight from China! What an honor!
post #5 of 20
Everyone will need to readjust their estimates for Apple's tablet market share after all the other makers have cut their own estimated sales as much as in half in some cases.

So, while everyone else is downgrading their own expectations, Apple is still trying to increase their production to meet demand. With the school season beginning in this quarter you can bet Apple will see MAJOR sales gains. Then of course the following season is usually Apple's best as we go into the holidays.
Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
Reply
post #6 of 20
I looked at the site just two days ago, and they were still showing up to 2 weeks to ship.
post #7 of 20
iPad revenue is creeping up to iPhone revenue. If Apple can get its natural monopoly of the tablet market the way it did with the PMP market I think it be Apple most profitable arm of business once the handset market starts to plateau its smartphone growth.
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?"
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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?"
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post #8 of 20
Maybe people just bought from the competitors. I know alot of people who just got sick of waiting and purchased something else.
post #9 of 20
Quote:
Originally Posted by fjose1929 View Post

The article in Digitimes, while dubious, did not mean a drop to 50 percent in the overall market, but a drop in the Taiwan domestic tablet market.

the article cites a 35,000 total number of tablets. That alone should have given you a clue. 35K of a 15 million unit market is not even a rounding error.

Yes, I saw that too. This article on AppleInsider is just plain wrong. They should correct it.
post #10 of 20
Quote:
Originally Posted by solipsism View Post

iPad revenue is creeping up to iPhone revenue. If Apple can get its natural monopoly of the tablet market the way it did with the PMP market I think it be Apple most profitable arm of business once the handset market starts to plateau its smartphone growth.

Well you wanted evidence that Apple couldn't sell the things as fast as they could make them, looks like the supply wall finally hit and they're at that point - though I'm happy to assume that no stockpiles that they manage to build up will survive the christmas rush
post #11 of 20
Quote:
Originally Posted by cloudgazer View Post

Well you wanted evidence that Apple couldn't sell the things as fast as they could make them, looks like the supply wall finally hit and they're at that point - though I'm happy to assume that no stockpiles that they manage to build up will survive the christmas rush

I think that when considering "the supply wall" it is important to remember that apple is holding back its product volume in certain markets. I think that if there were more supplies and assembly capacity apple would be able to move lots more.
post #12 of 20
Quote:
Originally Posted by cloudgazer View Post

Well you wanted evidence that Apple couldn't sell the things as fast as they could make them, looks like the supply wall finally hit and they're at that point - though I'm happy to assume that no stockpiles that they manage to build up will survive the christmas rush

Quote:
Originally Posted by Hunabku View Post

I think that when considering "the supply wall" it is important to remember that apple is holding back its product volume in certain markets. I think that if there were more supplies and assembly capacity apple would be able to move lots more.

Bingo. Anyone that thinks Apple is even anywhere close to meeting global demand is misinformed at best, delusional at worst.

Cloudgazer... Christmas rush? More like Christmas bash-your-fellow-man(or woman)-over-the-head for an iPad 2. 'Tis the season... to be brutal.
post #13 of 20
Quote:
Originally Posted by solipsism View Post

iPad revenue is creeping up to iPhone revenue. If Apple can get its natural monopoly of the tablet market the way it did with the PMP market I think it be Apple most profitable arm of business once the handset market starts to plateau its smartphone growth.

Good points. But I would say the smartphone plateau is at least four years away. "Dumb" phones now seem as though they're decades behind a touch-screen phone. People will want to upgrade and carriers need this desire to continue to sign up all kinds of contracts. As with iPad 2, Apple is still nowhere close to meeting global iPhone 4 demand. The difference is that Android and BB are acceptable as smartphones for a lot of people, and there are a large variety of established players in the market... So Apple seems to be "eclipsed" in terms of numbers, albeit certainly not in terms of profits.

Quote:
Originally Posted by AdonisSMU View Post

Maybe people just bought from the competitors. I know alot of people who just got sick of waiting and purchased something else.

Some would have. But the iPad 2 is still viewed as "the real deal" by most people around the world and some still want it bad even if they tried some other crapblet.
post #14 of 20
Quote:
Originally Posted by Hunabku View Post

I think that when considering "the supply wall" it is important to remember that apple is holding back its product volume in certain markets. I think that if there were more supplies and assembly capacity apple would be able to move lots more.

Which markets out of curiosity? The only one I can find where the Apple Store isn't giving a 3-5 day ship is HK. Even mainland China is giving 3-5 days, or so says google translate
post #15 of 20
Quote:
Originally Posted by nvidia2008 View Post

Good points. But I would say the smartphone plateau is at least four years away. "Dumb" phones now seem as though they're decades behind a touch-screen phone.

Old folks like my parents will still want dumb-phones, smart phones will scare them. I'd guess that the last 30% of the market will take another decade or so to transition, in a long slow tail.
post #16 of 20
"Ironically, the improvements in availability come in the face of a report from DigiTimes, which claimed Thursday Apple's share of the tablet market in June slipped to 50% from its average of 60-70% due to supply shortages."

Ironically, I don't believe Katie Marsal actually read the said report, or even its headline. Surprisingly, or maybe not, she didn't even provide a link. If this is what we can expect from AI, the future doesn't bode well.
post #17 of 20
I ordered mine Friday June 15th at night and received it the 27th I LOVE IT! I would have received it on the 22nd hadn't it been for customs in Alaska holding it for 48 hrs before clearing it
post #18 of 20
Quote:
Originally Posted by cloudgazer View Post

Which markets out of curiosity? The only one I can find where the Apple Store isn't giving a 3-5 day ship is HK. Even mainland China is giving 3-5 days, or so says google translate

Hong Kong specifically. The iPad isn't even offered online in Hong Kong because of the high demand. As there is no Apple store in Hong Kong you need to purchase them through authorized dealers and it is a month wait to get one (and in Macau). This demand is coming from China even though you can now buy them online in China through the Chinese Apple Store. The reason is the Chinese version has a 17% tax / duty added, as do all Apple products sold in China, and there is no tax in Hong Kong. The Chinese buy them on visits or have friends and family pick them up as the HK online Apple Store won't ship outside HK. Further, the version sold in China, just like the iPhone, does not come with WIFI (international standard), but WLAN, a homegrown version that people don't like. It contains "secret" code produced by the Chinese government that has prevented it from gaining international certification although it works on wifi (international standard) networks.
post #19 of 20
Quote:
Originally Posted by FreeRange View Post

Hong Kong specifically.

Well that's not Apple holding back supply because they can't meet demand, it's Apple holding back supply to avoid annoying a potentially crucial political interest in China.
post #20 of 20
Quote:
Originally Posted by cloudgazer View Post

Well that's not Apple holding back supply because they can't meet demand, it's Apple holding back supply to avoid annoying a potentially crucial political interest in China.

Yeah Hong Kong is a challenge. Apple has to supply it with original products to reduce grey market issues (eg people going to Apple for support of non-supported grey market purchases). At the same time they don't want to be seen as pumping product into HK as a way of getting those products into China. Though that's exactly what the HK grey market is doing.
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