Japan disaster hasn't 'meaningfully impacted' Apple's iPad 2 supply
Despite initial concerns that the earthquake in Japan might result in a shortage of components for devices like Apple's iPad 2, a new report says the impact so far has only been "modest" at worst.
Analyst Gene Munster with Piper Jaffray said in a note to investors on Friday that he believes demand for the iPad 2 will continue to outstrip supply into the June 2011 quarter. He said the recent earthquake and tsunami in Japan will play a part in limited supplies, but not one as great as was originally feared.
"Apple recently reduced US iPad 2 lead times, which suggests the situation in Japan has not meaningfully impacted iPad 2 supply," Munster wrote. "We believe the most critical suppliers are back up and running following the earthquake and the impact to supply will be modest."
Munster said that both iPad 2 and iPhone 4 supply could be impacted with delays of one to two weeks. That's more optimistic than some earlier takes on the situation, like one that suggested the Japan disaster could leave Apple with a shortage of five key components of the iPad 2.
Just last week, Munster reported that the production status from Apple's Japanese component suppliers was changing hour by hour. But at the time, none of Apple's partners could quantify the damage at their facilities.
Though Apple has experienced crushing demand for the iPad 2 in the U.S. since its launch earlier this month, the company this week improved shipping time estimates to between three and four weeks, suggesting supply is catching up with demand. The change came as Apple begins selling the iPad 2 in 25 countries around the world at 5 p.m. local time today.
Analyst Gene Munster with Piper Jaffray said in a note to investors on Friday that he believes demand for the iPad 2 will continue to outstrip supply into the June 2011 quarter. He said the recent earthquake and tsunami in Japan will play a part in limited supplies, but not one as great as was originally feared.
"Apple recently reduced US iPad 2 lead times, which suggests the situation in Japan has not meaningfully impacted iPad 2 supply," Munster wrote. "We believe the most critical suppliers are back up and running following the earthquake and the impact to supply will be modest."
Munster said that both iPad 2 and iPhone 4 supply could be impacted with delays of one to two weeks. That's more optimistic than some earlier takes on the situation, like one that suggested the Japan disaster could leave Apple with a shortage of five key components of the iPad 2.
Just last week, Munster reported that the production status from Apple's Japanese component suppliers was changing hour by hour. But at the time, none of Apple's partners could quantify the damage at their facilities.
Though Apple has experienced crushing demand for the iPad 2 in the U.S. since its launch earlier this month, the company this week improved shipping time estimates to between three and four weeks, suggesting supply is catching up with demand. The change came as Apple begins selling the iPad 2 in 25 countries around the world at 5 p.m. local time today.
Comments
25,000 killed or missing. Radioactivity in the water at 10,000x's normal levels. But Apple's bottom line is unscathed - that put pep in my step for the day.
It should. Japan is going to have to keep their industry flowing if they want to rebuild their infrastructure and their citizen's lives.
25,000 killed or missing. Radioactivity in the water at 10,000x's normal levels. But Apple's bottom line is unscathed - that put pep in my step for the day.
It should. Japan is going to have to keep their industry flowing if they want to rebuild their infrastructure and their citizen's lives.
Somehow this reply makes me think of G.W. Bush telling us all to go out and shop for more crap to save ourselves from financial meltdown. Ugh. Please tell me that's not what you mean...
Somehow this reply makes me think of G.W. Bush telling us all to go out and shop for more crap to save ourselves from financial meltdown. Ugh. Please tell me that's not what you mean...
Really??! That's what you got from his reply?
How about the idea that any impact from the earthquake would have been in the form of factory shutdowns that would have caused parts shortages for various electronics manufacturers... and therefore a minimal impact to Apple most likely means that those factories are still able to continue running... therefore keeping $$$ flowing and jobs in place.
Really??! That's what you got from his reply?
How about the idea that any impact from the earthquake would have been in the form of factory shutdowns that would have caused parts shortages for various electronics manufacturers... and therefore a minimal impact to Apple most likely means that those factories are still able to continue running... therefore keeping $$$ flowing and jobs in place.
+1
And that's a fact!
Then why is it that a Premium Reseller in Germany hasn't got any iPads today???
No need to be coy, Roy. Name the system... uh, I mean, name the "premium reseller".
25,000 killed or missing. Radioactivity in the water at 10,000x's normal levels. But Apple's bottom line is unscathed - that put pep in my step for the day.
Oh thank you, morally superior one, for showing us the way
Here's the thing -- the earthquake, tsunami, and nuclear accident in Japan are an immense tragedy. Other than a handful of d-bags, I don't think that anyone questions that. But just as life had to go on after 9-11, so too must life go on now. If, in October of 2001, someone had suggested going into NYC for a broadway play without failing to first spend 15 minutes lamenting the tragedy of 9-11, would that make them a bad person?
There is tragedy, death, and destruction every day of the year in every country on this planet. If we all had to lament these things every time we bring up a topic that is related, we'd never get anything done.
Oh thank you, morally superior one, for showing us the way
Here's the thing -- the earthquake, tsunami, and nuclear accident in Japan are an immense tragedy. Other than a handful of d-bags, I don't think that anyone questions that. But just as life had to go on after 9-11, so too must life go on now. If, in October of 2001, someone had suggested going into NYC for a broadway play without failing to first spend 15 minutes lamenting the tragedy of 9-11, would that make them a bad person?
There is tragedy, death, and destruction every day of the year in every country on this planet. If we all had to lament these things every time we bring up a topic that is related, we'd never get anything done.
Blastdoor is right. Is Munster supposed to drop Apple coverage because of what happened in Japan? Or is AI supposed to censor it? Or are we supposed to not read it and ignore our investment in aapl? Does Freethinker know where the line is for all of us?
And, if I am not mistaken it is the same Neil Hughes who simply regurgitates Munster's "analyses" without even much of a question whether the analysis has any substance or not.
To point out that this week's analysis is different from last week is almost ridiculous. Of course, they are different. Does it require anyone to be told that? Maybe some Apple Insider readers????
And, Apple Insider keeps on letting Hughes\\ be one of their freelancers using a byline.
CGC
***The irony of the original iPad all over the place predictions of Gene Munster was that if he stuck with one of his "older predictions", he would have nailed it as Steve Jobs reported.
If memory serves me, he also predicted, based from his careful analysis that the original iPad would sell in the range of $500-700 and that it would sell a couple of millions during the first year.
If one does a thorough search, maybe one would find that his incorrect predictions may be a longer list that his years as an analyst. In quarterly reports, he would be more often be at the lower tier (of course with the guessing game, one can always guess correctly as predicted by the principles of statistics.
Somehow this reply makes me think of G.W. Bush telling us all to go out and shop for more crap to save ourselves from financial meltdown. Ugh. Please tell me that's not what you mean...
That would make more sense than going and kicking around soccer balls in the slums.
Then why there's a 2/3 weeks delivery time on the iPad2 when ordered 2 minutes after launch this morning at 1:00AM?
That's because the iPad2 is a sizzling hot product and very much in demand, earthquake or no earthquake, tsunami or no tsunami.
Blastdoor is right. Is Munster supposed to drop Apple coverage because of what happened in Japan? Or is AI supposed to censor it? Or are we supposed to not read it and ignore our investment in aapl? Does Freethinker know where the line is for all of us?
Classic humanism. We each choose our own ethics, and we must be as equally 'right' as everyone else. "Don't imply I'm a bad person."
There's hope for a few folks on this forum yet. Even the Grinch's heart grew three sizes that day...
That's because the iPad2 is a sizzling hot product and very much in demand, earthquake or no earthquake, tsunami or no tsunami.
As tragic as it is in Japan, I doubt that it became a 24X7 media event frenzy elsewhere as it did in US. Something else will happen and Japan will be relegated to the occasional update like Haiti. Even Libya fell nearly fell out of the news coverage until the no fly zone event.
As tragic as it is in Japan, I doubt that it became a 24X7 media event frenzy elsewhere as it did in US. Something else will happen and Japan will be relegated to the occasional update like Haiti. Even Libya fell nearly fell out of the news coverage until the no fly zone event.
Just curious... why would you doubt that other countries are/were also covering the situation in Japan 24/7?
[ more on topic... a little over 60 people lined up in downtown Vancouver for the iPad2 ]