Apple expected to produce 6 million second-gen iPads per month

Posted:
in iPad edited January 2014
Apple reportedly believes its anticipated second-generation iPad will be even more popular than the first model, as the company is expected to order production of 6 million per month.



If true, that number would be significantly higher than the 4 million per quarter produced for the current iPad, according to DigiTimes. Overseas sources indicated that Apple added two additional touch panel makers, Chimei Innolux and Cando, for production of the "iPad 2."



The two new suppliers are in addition to current suppliers Wintek, Sintek Photronics, and TPK Touch Solutions. The expanded number of partners will reportedly allow Apple to produce even more iPads per month, reaching the 6 million target.



Sources indicated that suppliers will begin shipments to Apple in January or February. That's consistent with previous reports that the device would begin shipping within 100 days to allow Apple to stock up for a launch by April.



Suppliers also indicated that Apple has no interest in producing a 7-inch iPad, smaller and lighter than the current 9.7-inch model. The news is noteworthy because it was DigiTimes that repeatedly reported for months that Apple was set to release a 7-inch iPad.



Apple Chief Executive Steve Jobs poured water on those rumors in October during his company's fourth-quarter conference call. He said that he believes competing products, like the 7-inch Samsung Galaxy Tab, have chosen a smaller size to reduce costs rather than usability.



"When we make decisions on 7-inch tablets, it's not about cost," Jobs said. "It's about the value of the product when you factor in the software."
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Comments

  • Reply 1 of 82
    Wow, that sounds awfully optimistic - if anywhere near true. 6 million a month? There would have to be some purdy fancy new bells and whistles and much less weight on the iPad2 to create that kind of demand, but then ONLY Apple really knows how many units are actually being sold right now and how desirable the new model (probably) will be . . .



    As a shareholder, sounds good to me.
  • Reply 2 of 82
    MacProMacPro Posts: 18,228member
    Quote:
    Originally Posted by TedK View Post


    Wow, that sounds awfully optimistic - if anywhere near true. 6 million a month? There would have to be some purdy fancy new bells and whistles and much less weight on the iPad2 to create that kind of demand, but then ONLY Apple really knows how many units are actually being sold right now and how desirable the new model (probably) will be . . .



    As a shareholder, sounds good to me.



    I hope it is true.



    As a share holder I had to run to the bathroom
  • Reply 3 of 82
    sflocalsflocal Posts: 4,617member
    Quote:
    Originally Posted by TedK View Post


    Wow, that sounds awfully optimistic - if anywhere near true. 6 million a month? There would have to be some purdy fancy new bells and whistles and much less weight on the iPad2 to create that kind of demand, but then ONLY Apple really knows how many units are actually being sold right now and how desirable the new model (probably) will be . . .



    As a shareholder, sounds good to me.



    If one thinks of global demand, six million units per month is not that far-fetched. I'd bet money that Apple will once again find itself unable to meet demand. That is one part that seems to be common with Apple.



    Apple has me waiting two buy two of those!
  • Reply 4 of 82
    melgrossmelgross Posts: 31,663member
    I'd like to know who these people are actually talking to. Six months ago we were told that Apple raised their production to two million a month, but last quarter's sales were 4.19 million in total, and we then read that Apple could have sold more if their production was up to it.



    Then we read that Apple's production was three million a month. Why? If it was two million a month, and they only sold four million because they couldn't make more, then something was screwy. If they don't sell nine million this quarter, and it isn't expected they will, then why ramp to six million next year? That would be an absurd 72 million tablets sold next year. That's crazy!



    As much as I would like to see Apple sell as many of these as possible, I can't believe numbers like that.
  • Reply 5 of 82
    So they won't make a 7 inch ipad, but they will probably make a 7 inch ipod touch Hey, they made a netbook when they said they would not.
  • Reply 6 of 82
    6 million per month = 72 million per year. That would be AMAZING and totally beyond what I would have thought possible.



    6 million per quarter = 24 million per year. That would be good, and not surprising.



    Surely they must have meant per quarter...
  • Reply 7 of 82
    Quote:
    Originally Posted by melgross View Post


    I'd like to know who these people are actually talking to. Six months ago we were told that Apple raised their production to two million a month, but last quarter's sales were 4.19 million in total, and we then read that Apple could have sold more if their production was up to it.



    Then we read that Apple's production was three million a month. Why? If it was two million a month, and they only sold four million because they couldn't make more, then something was screwy. If they don't sell nine million this quarter, and it isn't expected they will, then why ramp to six million next year? That would be an absurd 72 million tablets sold next year. That's crazy!



    As much as I would like to see Apple sell as many of these as possible, I can't believe numbers like that.



    I actually think that Apple sold between 9-10 million iPads this quarter. Regardless... 6 million a month next year when iP2 is released??!!... somebody is looking for a stock bump by giving it a little pump (imo)...
  • Reply 8 of 82
    Quote:
    Originally Posted by sflocal View Post


    If one thinks of global demand, six million units per month is not that far-fetched. I'd bet money that Apple will once again find itself unable to meet demand. That is one part that seems to be common with Apple.



    Apple has me waiting two buy two of those!



    me too, i cannot wait to get a new ipad2 and a macbook pro with Lion
  • Reply 9 of 82
    Quote:
    Originally Posted by Blastdoor View Post


    6 million per month = 72 million per year. That would be AMAZING and totally beyond what I would have thought possible.



    6 million per quarter = 24 million per year. That would be good, and not surprising.



    Surely they must have meant per quarter...



    There is a mistake in the article.... the current build rate is 4 million per QUARTER. Going to 6 million per month would be a huge change (16 million per year vs 72 million per year!).
  • Reply 10 of 82
    How about Apple take the current iPad, drop the price $100, and only make two version of the new iPad (memory size not 3G / WiFi)? That way they can have a product that is in between and does what a lot of users (especially corporate users) need the thing to do.



    And it puts it in direct competition with the smaller tablets like the Galaxy Tab.



    I think the next iPad should have an integrated GSM & CDMA chip, so it works on any network...and they can call it the iPad World or something like that.
  • Reply 11 of 82
    Quote:
    Originally Posted by nokin50 View Post


    There is a mistake in the article.... the current build rate is 4 million per QUARTER. Going to 6 million per month would be a huge change (16 million per year vs 72 million per year!).



    Here is the quote from the digitimes article



    "Apple's orders of iPad 2 are expected to top six million units a month compared to a volume of four million units a quarter for the current version, pushing Apple to expand the number of touch panel suppliers, the sources noted."
  • Reply 12 of 82
    Quote:
    Originally Posted by TedK View Post


    Wow, that sounds awfully optimistic - if anywhere near true. 6 million a month? There would have to be some purdy fancy new bells and whistles and much less weight on the iPad2 to create that kind of demand, but then ONLY Apple really knows how many units are actually being sold right now and how desirable the new model (probably) will be . . .



    As a shareholder, sounds good to me.



    China is building out, nation-wide hundreds of thousands of tower stations and WIFI access.



    6 million/month in a nation of > 750 million smartphone subscribers is not much.
  • Reply 12 of 82
    jmmxjmmx Posts: 341member
    This sounds just a a bit like a game of fantasy to me - much as I would love for it to be true. Perhaps they are preparing for peak capacity of 6M/month. That I might believe.
  • Reply 14 of 82
    melgrossmelgross Posts: 31,663member
    Quote:
    Originally Posted by island hermit View Post


    I actually think that Apple sold between 9-10 million iPads this quarter. Regardless... 6 million a month next year when iP2 is released??!!... somebody is looking for a stock bump by giving it a little pump (imo)...



    You actually think that? Based on what? I thought they sold 6.5 million last quarter, but they didn't.
  • Reply 15 of 82
    Quote:
    Originally Posted by crustyjusty View Post


    How about Apple take the current iPad, drop the price $100, and only make two version of the new iPad (memory size not 3G / WiFi)? That way they can have a product that is in between and does what a lot of users (especially corporate users) need the thing to do.



    And it puts it in direct competition with the smaller tablets like the Galaxy Tab.



    I think the next iPad should have an integrated GSM & CDMA chip, so it works on any network...and they can call it the iPad World or something like that.



    I think keeping the current iPad around would make a ton of sense for the education market. I'm sure there are plenty of school districts that hate the idea of putting a video camera in an iPad.
  • Reply 16 of 82
    Quote:
    Originally Posted by melgross View Post


    I'd like to know who these people are actually talking to. Six months ago we were told that Apple raised their production to two million a month, but last quarter's sales were 4.19 million in total, and we then read that Apple could have sold more if their production was up to it.



    Then we read that Apple's production was three million a month. Why? If it was two million a month, and they only sold four million because they couldn't make more, then something was screwy. If they don't sell nine million this quarter, and it isn't expected they will, then why ramp to six million next year? That would be an absurd 72 million tablets sold next year. That's crazy!



    As much as I would like to see Apple sell as many of these as possible, I can't believe numbers like that.



    My take on the last call was that they had been ramping to 2MM per quarter, starting in July, but didn't hit the 2MM mark until September. I thought they should have sold an extra 500k units, but that might be explained by lag time in the cycle. There is a delay between ordering equipment to produce more screens, getting it installed, starting production, and getting them to the final customer.



    I don't remember the 3MM/month number. But, applying the same logic, there are two likely scenarios: Christmas rush/building inventory for the new version, or a ramp-up that takes a full quarter. Either way, we shouldn't see more than 6.5-7.5MM iPads for FQ1.
  • Reply 17 of 82
    Quote:
    Originally Posted by melgross View Post


    You actually think that? Based on what? I thought they sold 6.5 million last quarter, but they didn't.



    I have to admit that it's a gut feeling... if they sold 4.2 million in the last quarter, and I believe they were on their heels, then I think it's more than possible to easily double that number now that supply has been increased and demand has skyrocketed for probably the #1 (or close to it) Christmas present.
  • Reply 18 of 82
    Quote:
    Originally Posted by Blastdoor View Post


    I think keeping the current iPad around would make a ton of sense for the education market. I'm sure there are plenty of school districts that hate the idea of putting a video camera in an iPad.



    I agree. A camera in an iPad for the education market would generally not make sense and even open school districts up to potential lawsuits. Keep the current middle-of-the-road-Pad available for schools.
  • Reply 19 of 82
    Quote:
    Originally Posted by eyemo View Post


    So they won't make a 7 inch ipad, but they will probably make a 7 inch ipod touch Hey, they made a netbook when they said they would not.



    I woild love it if my iPod Touch had a 7 inch screen!
  • Reply 20 of 82
    Quote:
    Originally Posted by crustyjusty View Post


    How about Apple take the current iPad, drop the price $100,

    And it puts it in direct competition with the smaller tablets like the Galaxy Tab.







    I would buy 2 iPads at that price!
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