Report: Apple ordering 65 million iPad screens for 2011

Posted:
in iPad edited January 2014
While most market estimates figure Apple will sell 45-48 million iPads next year, the company has reportedly placed orders with suppliers for 65 million 9.7 inch iPad displays.



According to a report by DigiTimes, Apple is believed to have placed orders for an estimated 35 million iPad displays from LG and another 30 million split between Samsung and Chimei Innolux.



The report notes that the volume of orders Apple is said to have placed with its suppliers indicates that the company "is very optimistic about the tablet PC market in 2011, and it may also mean that Apple is overbooking panel capacity." DigiTimes research has delivered a spotty record.



Apple eats up tablet screen supply



By the end of 2010, Apple is expected to have purchased 16.75 million screens for iPads, the report stated, all of which come from Taiwan's component manufacturers. In November alone, LG produced 1.5 million screens for Apple, while Samsung delivered another 1.2 million.



Through the end of the September quarter, Apple has reported selling 7.46 million iPads. That indicates a balance of nearly 9.2 million screens, minus the number Apple has actually sold in the winter quarter of 2010. If the company were actually running into overbooked panel capacity, the problem should already be evident.



Instead, Apple is now said to be bringing on Chimei Innolux as a new supplier of iPad displays in addition to LG and Samsung. Analysts' expectations for iPad sales in 2011 may not take into consideration everything the company is doing to sell its new tablet, including efforts to push iPad into the enterprise.



iPad screen size difficult for competitors to match



Apple's decision to offer iPad exclusively in the 9.7 inch screen size will likely lower component pricing in a way that only benefits Apple, while competitors continue to design and build 5 and 7 inch screens that don't benefit from the massive economy of scale Apple's iPad high volume sales are creating.



In October, Apple's chief executive Steve Jobs said "our potential competitors [in tablets] are having a tough time coming close to iPad's pricing. iPad incorporates everything we've learned about building high value products. We create our own A4 chip, software, battery chemistry, enclosure, everything. This results in an incredible product at a great price. The proof will be in the pricing of our competitors' products, which will offer less for more."



Jobs suggested that iPad competitors were using smaller screens because they couldn't afford to use larger screens, and were therefore ignoring the drawbacks related with trying to shoehorn a tablet interface into a 7 inch screen less than half the size of the iPad's.



"We think the 7 inch tablets will be dead on arrival, and manufacturers will realize they're too small and abandon them next year. They'll then increase the size, abandoning the customers and developers who bought into the smaller format," Jobs predicted.



iPad eats up tablet market, netbooks, PCs



Apple currently faces no credible competitors in the tablet market, particularly in corporate circles. Next year however, Apple is expected to face emerging competition from a new group of tablets running Android 3.0; HP's new PalmPad; RIM's PlayBook and a second run of Microsoft's Windows 7 tablets.



The iPad hasn't just taken over the tablet market; it has also killed growth among netbooks and, according to Morgen Stanley, has already eaten up 25 percent of PC notebook sales this year since it went on sale in April. In September, the firm revised its projected sales from 37 to 60 million tablets next year, saying the Dell Streak and Samsung Tab would also contribute to the trend toward tablets and away from conventional PCs.
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Comments

  • Reply 1 of 53
    Then there's no screen upgrade for the iPad 2.
  • Reply 2 of 53
    Quote:
    Originally Posted by haruhiko View Post


    Then there's no screen upgrade for the iPad 2.



    It seems... \



    But when does Apple presets new iPad? Probably in January?
  • Reply 3 of 53
    Quote:
    Originally Posted by haruhiko View Post


    Then there's no screen upgrade for the iPad 2.



    How do you figure that? \
  • Reply 4 of 53
    Quote:
    Originally Posted by haruhiko View Post


    Then there's no screen upgrade for the iPad 2.



    exactly!
  • Reply 5 of 53
    chris_cachris_ca Posts: 2,543member
    Quote:
    Originally Posted by jca666us View Post


    How do you figure that? \



    Because, according to the article, they have already ordered the screens. And if the screens had been an upgraded screen, the article would have mentioned it.
  • Reply 6 of 53
    Quote:
    Originally Posted by giosaccone View Post


    It seems... \



    But when does Apple presets new iPad? Probably in January?



    No earlier than Jan 28, 2011... and no later than when necessary!
  • Reply 7 of 53
    Oh... a "rumor" you say... from DigiTimes, you say............ >belch<...
  • Reply 8 of 53
    Quote:
    Originally Posted by Dick Applebaum View Post


    No earlier than Jan 28, 2011... and no later than when necessary!



    I like this element!
  • Reply 9 of 53
    Quote:

    In September, the firm revised its projected sales from 37 to 60 million tablets next year, saying the Dell Streak and Samsung Tab would also contribute to the trend toward tablets and away from conventional PCs.



    The Dell Streak and Galaxy Tab should be listed in the phone category, not tablet.
  • Reply 10 of 53
    wow thats incredible if true
  • Reply 11 of 53
    I hope they're 65 million Retina displays! I'll take one!
  • Reply 12 of 53
    wizard69wizard69 Posts: 12,720member
    Quote:
    Originally Posted by Chris_CA View Post


    Because, according to the article, they have already ordered the screens. And if the screens had been an upgraded screen, the article would have mentioned it.



    Oh come on it is a rumor from DigiTimes. That is bad enough but on the other hand they have claimed nothing other than screen counts. If anything the expansion of suppliers may indicate harder to manufacture screen are coming.
  • Reply 13 of 53
    If true, iPad alone: 65*600*0.2*[say, 16x]/900 = $135 - $140.



    Wow. (Subject to a number of assumptions, and assuming my arithmetic is correct).
  • Reply 14 of 53
    I really hope those are a minimum of SuperAmoled screens but would be great if they were Retina screens.
  • Reply 15 of 53
    Upgraded screen is probably a given othewise why would Apple have to order so many so far in advance. Keep in mind the source of info is poor and I would take anything they say with a grain of salt.
  • Reply 16 of 53
    Quote:
    Originally Posted by lav1daloca View Post


    I really hope those are a minimum of SuperAmoled screens but would be great if they were Retina screens.



    The current screens are superior to AMOLED. Contrast is almost as good and color accuracy is much better. When you are displaying mostly colored or white pixels, the AMOLED has horrible power consumption too.
  • Reply 17 of 53
    OK get Retina or AMOLED screens out of your heads now else you are gonna get disappointed!
  • Reply 18 of 53
    Quote:
    Originally Posted by Chris_CA View Post


    Because, according to the article, they have already ordered the screens. And if the screens had been an upgraded screen, the article would have mentioned it.



    Possibly. Seems like flimsy logic to base your opinion on.
  • Reply 19 of 53
    ltmpltmp Posts: 204member
    Quote:
    Originally Posted by anantksundaram View Post


    If true, iPad alone: 65*600*0.2*[say, 16x]/900 = $135 - $140.



    Wow. (Subject to a number of assumptions, and assuming my arithmetic is correct).



    I did the same calculation when I read this, and came up with about the same numbers.



    AAPL will hit $500 before the Jan 2012 earnings call if this report is accurate (and if Apple actually sells as many as they think they will).



    I might be able to retire before I die!
  • Reply 20 of 53
    successsuccess Posts: 1,039member
    Quote:
    Originally Posted by haruhiko View Post


    Then there's no screen upgrade for the iPad 2.



    There's no way Apple would let a second-gen get by without Retina. I think you'll see both a camera and new display at the minimum. Especially since there are other players in the game.
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