Perhaps someone more familiar with Apple and its product cycles can comment on a question:
It appears Apple is ready to launch it's new iphone 5 in October and announce other products - I don't know how the company calculates potential demand but - if there has been a reduction in orders for the ipad from Asian factories, could it have something to do with the company factoring in expected orders for iphone 5 (and other new products) in the near future? I.E. They don't expect to sell a new ipad AND iphone to the same customer - people will probably choose one or the other - at least for now.
Or have new iphone 5 sales already been, as they like to say on Wall Street, "baked in."
Just asking - I have no agenda here - am not trying to spread or create chatter/rumors. I am a big fan of AAPL and am a current owner of the stock - for full disclosure. Guess I'm just trying to stay informed.
Perhaps someone more familiar with Apple and its product cycles can comment on a question:
It appears Apple is ready to launch it's new iphone 5 in October and announce other products - I don't know how the company calculates potential demand but - if there has been a reduction in orders for the ipad from Asian factories, could it have something to do with the company factoring in expected orders for iphone 5 (and other new products) in the near future? I.E. They don't expect to sell a new ipad AND iphone to the same customer - people will probably choose one or the other - at least for now.
Or have new iphone 5 sales already been, as they like to say on Wall Street, "baked in."
Not that I know anything, but as a philosopher, even if I knew nothing about Apple at all, I would have to ask you why you think people won't buy both?
In fact a large part of Apple's market appears to be the halo buyer. That is "I bought this phone, and what do you know I really like it. So much I am going to get the tablet the same company makes. May even use their laptop when i upgrade."
I would say they are more likely to sell both to the same customer rather than less. Always questions assumptions.
That is the best laugh I've had in ages. On par with the usual reporting (making stuff up I should say) from that source.
Yeah, like: "When retailers dropped the price of HP's TouchPad tablet from $399 as low as $99 following the news that the company would divest itself of the entire division, consumers went wild. HP was forced to resume manufacturing the gadget just to keep up with demand."
So...HP decided to divest itself of the division, but was forced to resume manufacturing, because...of course something terrible would happen if they didn't keep up with demand for their discontinued product, even if it meant losing money on every sale, even though the demand was only a result of the fact that they were selling them at a huge loss?
We know this. You don't need to argue it against anyone. Anyone banking on iPad 3 this year is going to be wrong. I do expect a price drop to $399 though. That would be smart.
Nah, no price drop. Come back and mock me if it happens. But there's no history to show it in the cards. Sets a bad precedent for cutting deep into margins. They didn't do it with iPods. Definitely won't do it in reaction to whatever Amazon comes out with.
They did drop the iPhone price in 2007 I think. But it was right after launch.
Yeah, like: "When retailers dropped the price of HP's TouchPad tablet from $399 as low as $99 following the news that the company would divest itself of the entire division, consumers went wild. HP was forced to resume manufacturing the gadget just to keep up with demand."
So...HP decided to divest itself of the division, but was forced to resume manufacturing, because...of course something terrible would happen if they didn't keep up with demand for their discontinued product, even if it meant losing money on every sale, even though the demand was only a result of the fact that they were selling them at a huge loss?
Some have speculated that the renewed manufacturing was a mid course correction which was financially logical for them, if only marginally beneficial. Since the tablets apparently would actually sell at $99 they calculated that the penalties they would have to pay out to contractors and suppliers due to not ordering as many as contractually obligated, could be partially offset by continuing to make and sell them for a short time.
Munster has maintained his forecast of 10 million iPad units sold in the September quarter, increasing to 12 million in the December quarter. Both would be new highs for Apple, besting the company's previous record of 9.25 million units.
Put those numbers in context.
The earlier report today claimed that Apple reduced estimates from 17 M to 15 M due to low demand. Since the 17 M figure is no where in any of Apple's projections, it was clearly the analyst's own estimate. But since they sold a record 9.25 M last Christmas quarter (in the first Christmas after the device came out), is it realistic to think that they were going to grow by nearly 100%?
Analysts are idiots. They make up any figures they want - no matter how ridiculous and then when they revise them, the make up some pseudo business reason for the change - rather than admit that they pulled the original number from their butts and needed to change it to something more realistic now that we're getting closer to everyone finding out how foolish they are.
What is happening is that Apple is anticipating the release and subsequent popularity of the impending Amazon tablet. Since Apple has a nimble and efficient supply chain, they are phasing out the iPad 2 and are quickly starting the assembly lines on the iPad 3 (hello new factory in Brazil; picture the Brazilian assembly line workers doing the samba as they work).
Do you think they didn't know exactly when Amazon would release their tablet? And do you think it's coincidence that iPad sales are "slowing down" before the lucrative holiday season?
You heard it here: iPad 3 this year.
Who is going to supply 28nm A class processors?
Who is going to supply retina displays?
Since no one can do this q4 2011, it is impossible for an Ipad3 this year.
Comments
It appears Apple is ready to launch it's new iphone 5 in October and announce other products - I don't know how the company calculates potential demand but - if there has been a reduction in orders for the ipad from Asian factories, could it have something to do with the company factoring in expected orders for iphone 5 (and other new products) in the near future? I.E. They don't expect to sell a new ipad AND iphone to the same customer - people will probably choose one or the other - at least for now.
Or have new iphone 5 sales already been, as they like to say on Wall Street, "baked in."
Just asking - I have no agenda here - am not trying to spread or create chatter/rumors. I am a big fan of AAPL and am a current owner of the stock - for full disclosure. Guess I'm just trying to stay informed.
Perhaps someone more familiar with Apple and its product cycles can comment on a question:
It appears Apple is ready to launch it's new iphone 5 in October and announce other products - I don't know how the company calculates potential demand but - if there has been a reduction in orders for the ipad from Asian factories, could it have something to do with the company factoring in expected orders for iphone 5 (and other new products) in the near future? I.E. They don't expect to sell a new ipad AND iphone to the same customer - people will probably choose one or the other - at least for now.
Or have new iphone 5 sales already been, as they like to say on Wall Street, "baked in."
Not that I know anything, but as a philosopher, even if I knew nothing about Apple at all, I would have to ask you why you think people won't buy both?
In fact a large part of Apple's market appears to be the halo buyer. That is "I bought this phone, and what do you know I really like it. So much I am going to get the tablet the same company makes. May even use their laptop when i upgrade."
I would say they are more likely to sell both to the same customer rather than less. Always questions assumptions.
That is the best laugh I've had in ages. On par with the usual reporting (making stuff up I should say) from that source.
Yeah, like: "When retailers dropped the price of HP's TouchPad tablet from $399 as low as $99 following the news that the company would divest itself of the entire division, consumers went wild. HP was forced to resume manufacturing the gadget just to keep up with demand."
So...HP decided to divest itself of the division, but was forced to resume manufacturing, because...of course something terrible would happen if they didn't keep up with demand for their discontinued product, even if it meant losing money on every sale, even though the demand was only a result of the fact that they were selling them at a huge loss?
We know this. You don't need to argue it against anyone. Anyone banking on iPad 3 this year is going to be wrong. I do expect a price drop to $399 though. That would be smart.
Nah, no price drop. Come back and mock me if it happens. But there's no history to show it in the cards. Sets a bad precedent for cutting deep into margins. They didn't do it with iPods. Definitely won't do it in reaction to whatever Amazon comes out with.
They did drop the iPhone price in 2007 I think. But it was right after launch.
Nah, no price drop. Come back and mock me if it happens. But there's no history to show it in the cards.
That is what makes me a genius.
JP Morgan needs to be investigated by the SEC for stock manipulation, pure and simple.
Deep and simple - Mister Rogers
That is what makes me a genius.
I would say a price reduction would result in stock-outs through January.
Either way, they'll fly off the shelves.
Yeah, like: "When retailers dropped the price of HP's TouchPad tablet from $399 as low as $99 following the news that the company would divest itself of the entire division, consumers went wild. HP was forced to resume manufacturing the gadget just to keep up with demand."
So...HP decided to divest itself of the division, but was forced to resume manufacturing, because...of course something terrible would happen if they didn't keep up with demand for their discontinued product, even if it meant losing money on every sale, even though the demand was only a result of the fact that they were selling them at a huge loss?
Some have speculated that the renewed manufacturing was a mid course correction which was financially logical for them, if only marginally beneficial. Since the tablets apparently would actually sell at $99 they calculated that the penalties they would have to pay out to contractors and suppliers due to not ordering as many as contractually obligated, could be partially offset by continuing to make and sell them for a short time.
Munster has maintained his forecast of 10 million iPad units sold in the September quarter, increasing to 12 million in the December quarter. Both would be new highs for Apple, besting the company's previous record of 9.25 million units.
Put those numbers in context.
The earlier report today claimed that Apple reduced estimates from 17 M to 15 M due to low demand. Since the 17 M figure is no where in any of Apple's projections, it was clearly the analyst's own estimate. But since they sold a record 9.25 M last Christmas quarter (in the first Christmas after the device came out), is it realistic to think that they were going to grow by nearly 100%?
Analysts are idiots. They make up any figures they want - no matter how ridiculous and then when they revise them, the make up some pseudo business reason for the change - rather than admit that they pulled the original number from their butts and needed to change it to something more realistic now that we're getting closer to everyone finding out how foolish they are.
What is happening is that Apple is anticipating the release and subsequent popularity of the impending Amazon tablet. Since Apple has a nimble and efficient supply chain, they are phasing out the iPad 2 and are quickly starting the assembly lines on the iPad 3 (hello new factory in Brazil; picture the Brazilian assembly line workers doing the samba as they work).
Do you think they didn't know exactly when Amazon would release their tablet? And do you think it's coincidence that iPad sales are "slowing down" before the lucrative holiday season?
You heard it here: iPad 3 this year.
Who is going to supply 28nm A class processors?
Who is going to supply retina displays?
Since no one can do this q4 2011, it is impossible for an Ipad3 this year.
Who is going to supply 28nm A class processors?
Who is going to supply retina displays?
Since no one can do this q4 2011, it is impossible for an Ipad3 this year.
There isn't an iPad 3 this year... for the reasons you give and more.
Maybe a 2S... but that's even highly unlikely.
This thread is for discussion of the alleged reduction in iPad 2 manufacturing; please stay on topic.
http://www.reuters.com/article/2011/...78P2KZ20110926