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Foxconn to ship Apple a massive 20M iPads this quarter - report

post #1 of 22
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Apple's overseas manufacturing partner Foxconn is reportedly expected to ship an enormous 20 million iPad 2 units to Apple in this quarter, setting the company up to once again break sales records.

If Foxconn meets that estimate, it would represent 60 percent sequential growth in shipments, according to DigiTimes. iPad 2 orders are expected to be a major source of growth for the China-based operation, though Foxconn declined to comment on any specific clients.

To put the numbers in perspective, during its last fiscal quarter, Apple announced it had shipped a record 9.25 million iPad 2 units, which was a 183 percent increase over the year-ago quarter. Apple's figures represent the total number of units actually shipped, rather than the number of iPads built and supplied by Foxconn.

When the iPad 2 first launched this year, Apple could not meet demand as the company struggled to manufacture more units. Chief Operating Officer Tim Cook referred to Apple's effort to build more units as "the mother of all backlogs."

But as Apple and its overseas manufacturing partner Foxconn have apparently addressed those issues, shipments in the third quarter of calendar 2011 appear poised to skyrocket. As further evidence that Apple has overcome its supply woes, the company this week began selling refurbished iPad 2 units on its online store, at a discount of $50.



If Foxconn does ship Apple 20 million iPad 2 units this quarter, which concludes at the end of September, it would reach that milestone before the 2011 holiday buying season, when sales typically spike. For example, in the September quarter of last year, Apple sold 4.19 million first-generation iPad units, while sales rose to 7.33 million units in the holiday quarter concluding in December.

Apple's surging iPad sales continue as its competitors have failed to replicate the company's success in the touchscreen tablet market. Most recently, Hewlett-Packard opted to discontinue its TouchPad after just six weeks on the market due to poor sales.
post #2 of 22
Quote:
Originally Posted by AppleInsider View Post

Apple's overseas manufacturing partner Foxconn is reportedly expected to ship an enormous 20 million iPad 2 units to Apple in this quarter, setting the company up to once again break sales records.

That's another 8 billion in the bank, that should push AAPL to about $420 p/s eh?
post #3 of 22
Quote:
Originally Posted by King of Beige View Post

That's another 8 billion in the bank, that should push AAPL to about $420 p/s eh?

I can't see how it could add that much to the bank, maybe a quarter of that, still when HP just exited left, impressive amount of iPads

I think I may hold off, wait until there is a glut, then pick up some iPads when apple discounts them to $99. /s
post #4 of 22
Quote:
Originally Posted by King of Beige View Post

That's another 8 billion in the bank, that should push AAPL to about $420 p/s eh?

... and if Apple only ships 19.5 million units then the analysts will say that Apple didn't meet expectations and shave 6 - 10% from the value. \
Hmmmmmm...
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Hmmmmmm...
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post #5 of 22
Still, this is one of the RARE instances of positive news for Apple . . . in a sea of negativity since Steve's resignation. Happy to see it, no matter how far off it really might be.
post #6 of 22
that is 10.75 million more than last Q. Assuming $650 ASP, that is an additional $7 billion in revenue.

In terms of EPS -

7 billion * .40 (marign) = 2.8 billion operating profit.
2.8 billion * .755 (tax rate last Q was .245) = 2.11 billion profit.
2.11 billion / 938 million shares = 2.25 per share.

If everything remains equal relative to last Q, EPS will be 7.79 + 2.25 = 10.04.

the WS shsysters know this but will do everything to divert attention and keep manipulating the stock each week.
post #7 of 22
If true, this puts iPad 2 sales for calendar year 2011 way north of the 50 million I predicted last Spring. All the analysts were predicting 30-40 million max back then.

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Six x 3.5GHz '14 MP, 64GB, 1TB PCIe, 16TB HDs
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64 ATT iPhone 5S, 128 ATT iPad Air, 128 ATT iPad miniRetina, 16...

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post #8 of 22
Quote:
Originally Posted by King of Beige View Post

That's another 8 billion in the bank, that should push AAPL to about $420 p/s eh?

I think $8 billion is a bit optimistic; the gross margins on the iPad aren't as good as the iPhone.

Let's say ASP of $700, GM of 30%, net $210 per unit. That's only $4.2 billion.

post #9 of 22
Quote:
Originally Posted by King of Beige View Post

That's another 8 billion in the bank, that should push AAPL to about $420 p/s eh?

Not necessarily. Added revenue does not mean a share price spike for Apple shareholders. Wall Street can easily compress Apple's P/E further just as Wall Street is allowing Amazon's P/E to continually expand and easily outperform Apple over the last 52 weeks. Does it even make any sense at all for Amazon with much lower earnings to outperform Apple? You make it seem easy for Apple's share price to just jump up like that. Apple's share price is still massively lagging the analyst's median target price for no particular reason even as Apple is battering the current desktop computer industry and as non-Apple tablets fail to sell.

There is only some vague correlation of Apple revenue to share price that will likely never allow Apple shareholders to achieve expected share value. As quickly as Steve Jobs and his health issues moved out of the picture came the media doubts that Tim Cook can do a decent job of guiding Apple to future profitability. That's the nature of owning Apple stock. There's always a fabricated reason for holding Apple's share price down no matter how well the company is currently doing.
post #10 of 22
Quote:
Originally Posted by island hermit View Post

... and if Apple only ships 19.5 million units then the analysts will say that Apple didn't meet expectations and shave 6 - 10% from the value. \

You hit the nail on the head. Any reason to shave value from Apple works rather well. If Amazon manages to sell even one million fictitious tablets, it will add 10% to Amazon's share value. Just the mention of an Amazon tablet will boost Amazon's share price and lower Apple's share price.
post #11 of 22
Apple can add another reseller to its list...Macys. Macys is stocking WiFi iPads in their "E Spot" vending machines. BTW....associates of Macys get discounts on products in the machine.
post #12 of 22
Quote:
Originally Posted by Multimedia View Post

If true, this puts iPad 2 sales for calendar year 2011 way north of the 50 million I predicted last Spring. All the analysts were predicting 30-40 million max back then.

When the iPad 1 was announced, I predicted 10 million sales for CY 2010 -- it was too low,

I predicted 60 Million iPads (all models and versions) for CY 2011.

Based on CY11 Q1 and Q2, I was beginning to think that 40-50 million was more realistic.

If CY2011 Q3 == 20 million, then it will be almost 44 million (43.94) for the 1st 3 quarters.

Since the rumored iPad 3 estimates are that it will appear as late as June 2012 -- any "Osborne Effect" for the Holiday quarter has been mitigated.

Hey, 60 million could be too low for CY 2011.


Especially as those other tablets are discontinued -- they may free up components for increased iPad production


C'mon Tim, lets have a 75-million iPad 2011 (including refurbs).
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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #13 of 22
Quote:
Originally Posted by VinitaBoy View Post

Still, this is one of the RARE instances of positive news for Apple . . . in a sea of negativity since Steve's resignation. Happy to see it, no matter how far off it really might be.

What are you referring to? The stock price didn't quiver when Jobs resigned (somewhat incredibly since in year past it might drop 10% if he sneezed), and since then if anything I'll seen are glowing reports about how well manage Apple is and how it will do fine without him. The days of the media beating up on Apple seem to be in the past (for now).
post #14 of 22
20 million in the quarter!?

What is that collective sob I hear.......?
post #15 of 22
Quote:
Originally Posted by anantksundaram View Post

20 million in the quarter!?

What is that collective sob I hear.......?

Well... at least HP has pent up demand for their TouchPad...
Hmmmmmm...
Reply
Hmmmmmm...
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post #16 of 22
I still chuckle over those predictions for an iPad3, coming out about now.
With these sales, why would Apple ever want to rush out another version?
Just because it can?
Assuming sales may drop off following the holidays, iPad3 will come along in March and crank sales right back up.
post #17 of 22
Quote:
Originally Posted by Constable Odo View Post

Not necessarily. Added revenue does not mean a share price spike for Apple shareholders. Wall Street can easily compress Apple's P/E further just as Wall Street is allowing Amazon's P/E to continually expand and easily outperform Apple over the last 52 weeks. Does it even make any sense at all for Amazon with much lower earnings to outperform Apple? You make it seem easy for Apple's share price to just jump up like that. Apple's share price is still massively lagging the analyst's median target price for no particular reason even as Apple is battering the current desktop computer industry and as non-Apple tablets fail to sell.

There is only some vague correlation of Apple revenue to share price that will likely never allow Apple shareholders to achieve expected share value. As quickly as Steve Jobs and his health issues moved out of the picture came the media doubts that Tim Cook can do a decent job of guiding Apple to future profitability. That's the nature of owning Apple stock. There's always a fabricated reason for holding Apple's share price down no matter how well the company is currently doing.


Well hell, while we're discussing the stock price, every AAPL owner needs to get their head around the inside secret that traders are watching this stock and keeping it like a TIGHTLY COILED SPRING. It's obvious to me. They have bets on both sides and they want to be able to let the spring pop when they WANT it to pop. I think they do this with several stocks. Some they either let alone or can't control.
In the US you can watch CNBC and if you watch it long enough you can discern when they are announcing an AAPL rise or fall. Craptastic isn't it.

I am so happy that Mr. Jobs has made me realize it's important to listen to YOURSELF and believe in yourself. He's proven me right. I can remember telling everyone that design would become paramount in enterprise, that Steve at Apple would be highly motivated to bring a lot of that design to market and that it would do extremely well. This was back in 2001 or so. I knew it long before then. I was so completely sure. Soon after all the business pubs began writing articles about the importance of design.

Trading this stock has certainly changed since then! I wish more companies would try to innovate. My father was an inventor.

The response to expertise and innovation is often petty dislike and envy. That's what you have with Apple. Traders probably make half their income bouncing Apple stock back and forth but it will tend to rise over time.
It takes a lot to hold on, but we do.
What is really factored into the price is a kind of perpetual sense of disbelief that any company could be as good as Apple is. ~Retrogusto
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What is really factored into the price is a kind of perpetual sense of disbelief that any company could be as good as Apple is. ~Retrogusto
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post #18 of 22
Quote:
Originally Posted by Applecation View Post

I still chuckle over those predictions for an iPad3, coming out about now.
With these sales, why would Apple ever want to rush out another version?
Just because it can?
Assuming sales may drop off following the holidays, iPad3 will come along in March and crank sales right back up.

Can you blame them for trying to stop people from buying. the mantra is a new ipad is on the way so do not buy. Now it is all about Amazon and the imaginary ipad killer. The crescendo will rise as the holidays approach. then it will be back to ipad 3 is coming, so do not buy.

The shysters know that apple management will not respond. Other companies would immediately launch a tirade and if they truly have sales, these other companies will have a meter counting the sales every minute. Too bad the apple folks do not have the kill instinct and allow the shysters and their market makers to manipulate the stock at will.
post #19 of 22
One minor point is that 20 million in production does not necessarily mean 20 million in sales. They might be stockpiling a bit for the fourth calendar quarter to make sure they meet holiday demand.
post #20 of 22
So, Apple lets the shysters manipulate their stock at will? What would you have them do?
The only regulation is self regulation, since the SEC is a revolving door of corporate lobbyists paid to keep the system like this with little change. Very Few people understand the financial markets enough to even know WHAT to regulate.

And so it will continue, at least until someone miscalculates, and that I do fear.

But should the market ever steady and there's no other way, we'll have another repeat of the 'fat finger Friday', something, anything, so the traders can get another churn to profit off of.
What is really factored into the price is a kind of perpetual sense of disbelief that any company could be as good as Apple is. ~Retrogusto
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What is really factored into the price is a kind of perpetual sense of disbelief that any company could be as good as Apple is. ~Retrogusto
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post #21 of 22
Quote:
Originally Posted by Constable Odo View Post

Not necessarily. Added revenue does not mean a share price spike for Apple shareholders. Wall Street can easily compress Apple's P/E further just as Wall Street is allowing Amazon's P/E to continually expand and easily outperform Apple over the last 52 weeks. Does it even make any sense at all for Amazon with much lower earnings to outperform Apple? You make it seem easy for Apple's share price to just jump up like that. Apple's share price is still massively lagging the analyst's median target price for no particular reason even as Apple is battering the current desktop computer industry and as non-Apple tablets fail to sell.

There is only some vague correlation of Apple revenue to share price that will likely never allow Apple shareholders to achieve expected share value. As quickly as Steve Jobs and his health issues moved out of the picture came the media doubts that Tim Cook can do a decent job of guiding Apple to future profitability. That's the nature of owning Apple stock. There's always a fabricated reason for holding Apple's share price down no matter how well the company is currently doing.

Anytime you want to know what a investing novice sounds like, just read the above.

Blaming the universe, or mysterious forces against [insert your pet stock here] is an old gag practiced by people who don't understand investing.
post #22 of 22
Quote:
Originally Posted by VinitaBoy View Post

Still, this is one of the RARE instances of positive news for Apple . . . in a sea of negativity since Steve's resignation. Happy to see it, no matter how far off it really might be.

It's called reality. People are still buying iPads like crazy and competitors are holding fire sales. Steve's resignation won't change this. Not for at least the rest of the year, anyway.
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