Apple struggles to meet iPhone 4 demand as iPad availability improves
Constraints in overseas supplies have prompted one prominent Wall Street analyst to lower iPhone 4 sales estimates for the current quarter, while Apple's monthly iPad orders surpassed 2 million units in July.
Kaufman Bros. lowers iPhone 4 sales projections
Analyst Shaw Wu said to investors Tuesday that he was shifting iPhone assumptions to later quarters due to the "high likelihood" that screen supply constraints and inventory drawdown will impact shipments over the next two quarters. He noted that Wall Street consensus calls for 8.5 million iPhone sales in the quarter that ended with June, but he believes the number will be closer to 7.5 million -- down from his previous prediction of 9 million.
If that proves true, it would represent a significant decrease from last quarter's iPhone sales, when Apple shipped a record 8.75 million handsets.
But in the September quarter, Wu has slightly increased his forecast of iPhone sales to 10.5 million, up from 10.4 million. He said checks with overseas suppliers have indicated that availability will improve in the August timeframe, offset by about a million of remaining channel inventory that is expected to be drawn down.
Wu still expects Apple to ship 40 million iPhones in calendar 2010.
"The reason why we believe the inventory drawdown this time will be more impactful than previous drawdowns, is because this product transition involves two entirely new products: the iPhone 4 and iPhone 3GS," he wrote. "The new iPhone 3GS with 8 GB of storage is an entirely new model compared to the previous-generation 3GS with 16 GB and 32 GB of storage. With the new storage capacity, this is not as simple as taking the previous product and marking the price down."
iPad demand remains strong
Wu also raised his forecast for iPad sales to 3.5 million in the June quarter, up from 3.3 million. He also expects sales of 10 million units in calendar 2010, up from 9.7 million. He said checks indicated stronger-than-expected demand for Apple's tablet, which will be offset by still constrained, but improving availability.
Signs of greater demand and improved availability were also reported Tuesday by Taiwanese industry publication DigiTimes. It said that Apple's monthly iPad orders to manufacturers in Taiwan surpassed 2 million units in the month of July, and the company is expected to maintain that level in the foreseeable future.
The report said Apple likely ordered around 2.3 million iPads, with between 58 percent and 60 percent of those for the 3G-capable model, and the remaining orders for the Wi-Fi-only hardware. The repot noted that the orders come despite the fact that the Wi-Fi models had greater sales in the first half of 2010.
In late June, Apple announced that it had sold 3 million iPads in the products first 80 days of availability. That came just three weeks after the company revealed that it had sold 2 million iPads in the product's first two months.
Kaufman Bros. lowers iPhone 4 sales projections
Analyst Shaw Wu said to investors Tuesday that he was shifting iPhone assumptions to later quarters due to the "high likelihood" that screen supply constraints and inventory drawdown will impact shipments over the next two quarters. He noted that Wall Street consensus calls for 8.5 million iPhone sales in the quarter that ended with June, but he believes the number will be closer to 7.5 million -- down from his previous prediction of 9 million.
If that proves true, it would represent a significant decrease from last quarter's iPhone sales, when Apple shipped a record 8.75 million handsets.
But in the September quarter, Wu has slightly increased his forecast of iPhone sales to 10.5 million, up from 10.4 million. He said checks with overseas suppliers have indicated that availability will improve in the August timeframe, offset by about a million of remaining channel inventory that is expected to be drawn down.
Wu still expects Apple to ship 40 million iPhones in calendar 2010.
"The reason why we believe the inventory drawdown this time will be more impactful than previous drawdowns, is because this product transition involves two entirely new products: the iPhone 4 and iPhone 3GS," he wrote. "The new iPhone 3GS with 8 GB of storage is an entirely new model compared to the previous-generation 3GS with 16 GB and 32 GB of storage. With the new storage capacity, this is not as simple as taking the previous product and marking the price down."
iPad demand remains strong
Wu also raised his forecast for iPad sales to 3.5 million in the June quarter, up from 3.3 million. He also expects sales of 10 million units in calendar 2010, up from 9.7 million. He said checks indicated stronger-than-expected demand for Apple's tablet, which will be offset by still constrained, but improving availability.
Signs of greater demand and improved availability were also reported Tuesday by Taiwanese industry publication DigiTimes. It said that Apple's monthly iPad orders to manufacturers in Taiwan surpassed 2 million units in the month of July, and the company is expected to maintain that level in the foreseeable future.
The report said Apple likely ordered around 2.3 million iPads, with between 58 percent and 60 percent of those for the 3G-capable model, and the remaining orders for the Wi-Fi-only hardware. The repot noted that the orders come despite the fact that the Wi-Fi models had greater sales in the first half of 2010.
In late June, Apple announced that it had sold 3 million iPads in the products first 80 days of availability. That came just three weeks after the company revealed that it had sold 2 million iPads in the product's first two months.
Comments
And the iPad is just a juggernaut!
Imagine the queues if the antenna was reliable!? Wow.
Imagine the antenna if the queues were reliable.
btw, here in Japan there is only a week wait for the reserve system. Friend reserved last week and picked it up yesterday.
BUT still no white which is what I'm holding out for. I've already waited 3 years for this iPhone 4 so I can wait another month or so for the white. Hardly anyone will have the white. Should look pretty cool.
Imagine the antenna if the queues were reliable.
Imagine the reliable if the antenna were queues.
They could probably double their production and still sell them all.
Yes. I live in a country that has not yet seen the iPad or the iPhone 4...
They don't produce enough of them.
People here are still buying 3GSs because they can't wait.
Maybe that's the plan. All leftovers from the US gets rerouted to other countries waiting months for the next model. But that doesn't explain the iPad. No older model.
They have had plenty of time to ramp up production now I think.
Steve says they are doing all they can but it seems like this is a never ending story.
Still don't have iPad to buy myself.
What in the article supports the claim that "iPad availability improves"?
I checked the online store and all models are "7-10 business days". It's been that way for as least a week.
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Apparently, whiners --- being as out to lunch as they may seem --- managed to noticeably shatter AAPL...
I don't know about that... the whole market has been down.
Maybe the negative publicity did sour investors, making APPL follow the market instead of contradicting it.
AAPL is up $4.71 in pre-open trading.
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Apparently, whiners --- being as out to lunch as they may seem --- managed to noticeably shatter AAPL...
I'm sorry, but many of us don't give a sh*t about AAPL stock. But we do care about the products that Apple produces.
The problem with many people on this board is that they are so worried about negative stories affecting AAPL stock that they try to gloss over any flaws that Apple products may have and label those with genuine problems as "whiners".
AAPL is up $4.71 in pre-open trading..
Ummm. Bloomberg on my iPhone displays it as ``down' ', not up.
They have shipped them early and will be here on the 8th.
Doesn't look like a struggle to meet demand from this household's perspective - your mileage may vary.
I'm sorry, but many of us don't give a sh*t about AAPL stock. But we do care about the products that Apple produces.
The problem with many people on this board is that they are so worried about negative stories affecting AAPL stock that they try to gloss over any flaws that Apple products may have and label those with genuine problems as "whiners".
Gimme break, eh? Problem'my ass.
Your ``problem' ' still has nothing to do with normal phone function. Just try to hit that seam with your pinky, while placing regular call and not doctoring youtube video in dark room, while reception is already crappy.
Imagine the reliable if the antenna were queues.
You're being such a troll, lately... but at least this reply was funny.
I wouldn't want a queue on my iPhone even if it gave me 7 bars of reception.
Or maybe I would, if Apple designed this queue using some of its magic. And offered it in 7 different brilliant colors.
Imagine the queues if the antenna was reliable!? Wow.
You are looking quite bitter and obsessed now. You have become the troll you formerly railed against. Sad.
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What in the article supports the claim that "iPad availability improves"?
I checked the online store and all models are "7-10 business days". It's been that way for as least a week.
.
Ordering from online seems to take longer than the stores at the moment. I was able to walk into the apple store on the fourth and walk out with my ipad no problems. While I was there, there was also a person or two buying an iPhone 4 without problems it seemed. I was pretty surprised.
Until I can just walk into a store and just pick one up the item remains constrained, at least to me!
You're being such a troll, lately... but at least this reply was funny.
To quote Steve Jobs: "Thanks, I think."