Suppliers delivered 2.4M-2.6M iPad 2 units to Apple in March - report
Perhaps offering an indication of how many iPad 2 units were sold at launch, a new report claims Apple received between 2.4 million and 2.6 million of the hot-selling device from suppliers in the month of March.
A "conservative estimate" of iPad 2 supply going forward sees Apple taking delivery of 4 million to 4.5 million iPad units a month, totaling more than 12 million units in the second quarter of 2011, supply chain sources told DigiTimes. Upstream touch panel makers reportedly indicated that sales of the iPad 2 are running at a faster rate than the first-generation device released in April of 2010.
Those sources also reportedly indicated that the "key" for Apple and other tablet makers will be the supply of "cover lenses for touch panel modules." For Apple to meet its goals in building iPad 2 units in 2011, it will need a steady supply of components from touch panel makers.
In January, Apple revealed that it had invested $3.9 billion into secret long-term component contracts. Though the company would not reveal which components it had inked a deal to secure, it has been speculated that constrained hardware like the glass capacitive touch panels found on the iPad could play a part.
Given regular stock-outs of the iPad 2 in March, Apple presumably sold through the entirety of shipments it received. That would mean Apple sold at least 2.4 million units, if component suppliers' estimates are accurate.
For comparison, the first-generation iPad took 28 days to reach its first million sales. Initially, only the Wi-Fi model was on sale for the first month in the U.S., while both the Wi-Fi-only and 3G-capable iPad 2 models went on sale at the same time in 2011. In addition, Apple began international sales of the iPad 2 in 25 countries in late March, faster than the rollout of the first-generation iPad.
A "conservative estimate" of iPad 2 supply going forward sees Apple taking delivery of 4 million to 4.5 million iPad units a month, totaling more than 12 million units in the second quarter of 2011, supply chain sources told DigiTimes. Upstream touch panel makers reportedly indicated that sales of the iPad 2 are running at a faster rate than the first-generation device released in April of 2010.
Those sources also reportedly indicated that the "key" for Apple and other tablet makers will be the supply of "cover lenses for touch panel modules." For Apple to meet its goals in building iPad 2 units in 2011, it will need a steady supply of components from touch panel makers.
In January, Apple revealed that it had invested $3.9 billion into secret long-term component contracts. Though the company would not reveal which components it had inked a deal to secure, it has been speculated that constrained hardware like the glass capacitive touch panels found on the iPad could play a part.
Given regular stock-outs of the iPad 2 in March, Apple presumably sold through the entirety of shipments it received. That would mean Apple sold at least 2.4 million units, if component suppliers' estimates are accurate.
For comparison, the first-generation iPad took 28 days to reach its first million sales. Initially, only the Wi-Fi model was on sale for the first month in the U.S., while both the Wi-Fi-only and 3G-capable iPad 2 models went on sale at the same time in 2011. In addition, Apple began international sales of the iPad 2 in 25 countries in late March, faster than the rollout of the first-generation iPad.
Comments
Given regular stock-outs of the iPad 2 in March, Apple presumably sold through the entirety of shipments it received. That would mean Apple sold at least 2.4 million units, if component suppliers' estimates are accurate.
If Apple was delivered 2.4 M in March, even with the sell out, they have some
amount of channel inventory - i.e. it takes some time for stock to make it from the back door of Foxconn to the shelves of the stores. So realistically, I would say that most likely they sold about 2M or a little more.
We know exactly how many they sold: as many as they could make. Good luck, competition.
first, how many could they make? second... what competition?
what competition?
Windows 9 tablet with dual styluses.
All this if the reports are true of course. With nothing official from Apple, it's still all speculation, tho with Apple all too happy, even anxious, to announce launch sales with last years original iPad, I find it odd for them to be so quiet this year.
EDIT: Another read of the Fortune article shows that analysts surveyed were including both the original and v2 iPads in their estimates. The lower range may not be so far off then IMO.
If Apple was delivered 2.4 M in March, even with the sell out, they have some
amount of channel inventory - i.e. it takes some time for stock to make it from the back door of Foxconn to the shelves of the stores. So realistically, I would say that most likely they sold about 2M or a little more.
It takes 3 days at most. 2 days to major locations. Apple is able to designate ship to locations based on sales volume at a shop in under a week. They can't adjust volume manufactured so nimbly though.
Windows 9 tablet with dual styluses.
Add PlayBook with a keyboard
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.
Perhaps offering an indication of how many iPad 2 units were sold at launch, a new report claims Apple received between 2.4 million and 2.6 million of the hot-selling device from suppliers in the month of March.
My guess is they'll get to 10 million/month by the end of the year. Figure an average of 7 million/month for the last nine months of the year and five to six million through March. That'd be in the neighborhood of 65 million this year, or 85 million in total circulation.
That's a phenomenal installed base.
Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.
I would think they would have have been ramping up for several weeks, if not months. So if suppliers can ship 2.5 mil in a month, and they did that for at least the month prior to lunch, there's your 5 mil.
Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.
This is exactly what I was thinking. As they ramp up production, they don't instantly start at several million a month. It takes a while to get there! Theoretically, they were building some inventory for the launch from the beginning of the year through the ramp up.
Of course, it is possible that all of that inventory was held by the manufacturers until launch, in which case it could possibly be counted as March deliveries... Anybody know how this is usually reported?
Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.
Quite possibly.
That info might explain some of the "crushing demand" that AI has mentioned. Just way too few units available, somewhat validating rumors that Apple did not have sufficient stock of some components to meet initial launch needs. ... Also tends to support other mentions that Apple rushed out the iPad2 launch before it was originally planned to make sure they beat competitors to market.
Keep reaching.
2) I wonder why they haven't released any unit sales numbers. They have no competition to combat in the media right now and it's not like they can't sell them all as is, but it would be nice to have an official idea of the unit sales.
iPad 2 came with iOS 4.3 preinstalled. iOS 4.3 only went gold just before launch so I doubt Apple had been stocking up on iPad 2 for months.
I see what you're saying but there are a couple thins to consider. 1) Apple locked in the features of iOS 4.3 well before it wet GM and had a specific team work to make sure the drivers and other aspects were splod independent of the standard 4.3 release. (we cam tell this by looking at the build number) 2) Apple did have the iPad 2's ready and waiting to be flashed witg the GM of 4.3, then to be packaged.
I'm not saying you're wrong, as I would have no info either way, but I think there are things to consider between building the iPad 2 and installing iOS.
so about 7 million iPad and iPad2s sold in the january quarter (from the fortune article), roughly the same as the december quarter, and production ramped up to sell around 12 million in the current quarter. That should put apple on track to sell about 50 million iPads this year.
Pretty much my thinking as well, tho I'd go just a tad lower with 40M for the calendar year, perhaps 32-36M combined iPad1&2 for the "Apple year". I personally don't think their suppliers be able to produce 4M units a month till sometime later in the year. But absolutely nice numbers in any case and one Android or WM7 tablet builders will be envious of.
Maybe I'm missing something, but wouldn't Apple have been building inventory for at least a few weeks prior to the launch?
So their sales figures would be the 2.4MM they made in March, plus whatever they had built previously. This would make 5 Million seem a bit more reasonable.
Probably not. They are using JIT. They don't even go to a warehouse, they go directly into the channel.
Probably not. They are using JIT. They don't even go to a warehouse, they go directly into the channel.
I doubt that they relied on their JIT system for the iPad 2 launch. I would imagine they built up some inventory and then shot it to all of the retailers for launch day.