Production issues predicted to limit Retina iPad mini supply until early 2014
Investors remain concerned that Apple may not be able to produce enough second-generation iPad mini units with Retina displays, with one analyst on Monday predicting that the company may not be able to ramp up production to satisfactory levels until next year.
Timothy Arcuri of Cowen and Company said in a note to investors that he doesn't expect production of the anticipated second-generation iPad mini to ramp up until early 2014. He believes that supplies ahead of the holiday shopping season may be tight, as Apple could face issues in producing high-resolution Retina displays for its 7.9-inch tablet.
As a result, he believes total iPad shipments for the holiday quarter may be around 23 million -- a number that would be just slightly higher than the 22.9 million units Apple sold in the same quarter a year ago.
Arcuri isn't the only one who expects Apple may face production issues cramming more pixels into the iPad mini's display. Word from Apple's supply chain for months has suggested that there may be yield issues at play in developing a 7.9-inch Retina display en masse.
If production of the Retina iPad mini is limited, Arcuri still expects strong demand for the company's anticipated redesign of the fifth-generation iPad. Numerous rumors and leaks have suggested the new full-size iPad will be lighter, thinner, and sport smaller side bezels.
Arcuri noted that a complete redesign of the 9.7-inch iPad would be the first such upgrade in years, which could offset cannibalization from the 7.9-inch iPad mini. Both the fifth-gen iPad and second-gen iPad mini are expected to be unveiled by Apple at a media event on Tuesday at 10 a.m. Pacific, 1 p.m. Eastern.
The analyst said Monday that he also expects Apple to announce availability for OS X 10.9 Mavericks, the next major upgrade to the Mac operating system, as well as new MacBook Pro models running Intel's latest Haswell processors. Those predictions are largely in line with general expectations heading into the event.
Timothy Arcuri of Cowen and Company said in a note to investors that he doesn't expect production of the anticipated second-generation iPad mini to ramp up until early 2014. He believes that supplies ahead of the holiday shopping season may be tight, as Apple could face issues in producing high-resolution Retina displays for its 7.9-inch tablet.
As a result, he believes total iPad shipments for the holiday quarter may be around 23 million -- a number that would be just slightly higher than the 22.9 million units Apple sold in the same quarter a year ago.
Arcuri isn't the only one who expects Apple may face production issues cramming more pixels into the iPad mini's display. Word from Apple's supply chain for months has suggested that there may be yield issues at play in developing a 7.9-inch Retina display en masse.
If production of the Retina iPad mini is limited, Arcuri still expects strong demand for the company's anticipated redesign of the fifth-generation iPad. Numerous rumors and leaks have suggested the new full-size iPad will be lighter, thinner, and sport smaller side bezels.
Arcuri noted that a complete redesign of the 9.7-inch iPad would be the first such upgrade in years, which could offset cannibalization from the 7.9-inch iPad mini. Both the fifth-gen iPad and second-gen iPad mini are expected to be unveiled by Apple at a media event on Tuesday at 10 a.m. Pacific, 1 p.m. Eastern.
The analyst said Monday that he also expects Apple to announce availability for OS X 10.9 Mavericks, the next major upgrade to the Mac operating system, as well as new MacBook Pro models running Intel's latest Haswell processors. Those predictions are largely in line with general expectations heading into the event.
Comments
No. Really. Apple is predicted to have the same thing happen to them that always happens to them?
Fire who said this. Jail who said this. I want a public shaming and a huge letter ‘A’ burnt into his forehead. Red and raw the rest of his life.
Modern day effing scarlet letter.
This is so typical of the pundits etc that it's almost a joke, meme worthy even.
They go full guns on baseless ideas of how far Apple might go and then they push out 'issues' to cover their butts when it turns out they are wrong.
Just wait, tomorrow there will be no retina iPad Mini, because Apple was likely never planning to make one at this time if ever. And there will be scads of articles about the exact issues that prevented it.
Same if there is no Touch ID, no Gold back, no 802.11ac or whatever else.
Go Schmidt all over C|Net, you useless idiot.
What planet r u on?
I think these idiots will be proven wrong tomorrow.
All in all, it's a good sign as each time they were all wrong. Would be more concerned if they started predicting all green : D
Go Schmidt all over C|Net, you useless idiot.
Take it easy, Tall One.
How do we get rid of this . . . person?
Hey, I'm a tech guru. I say that Apple is going to implode with their failure to meet demand and for making sub-standard products that kids don't like.
I'm telling you, switch to Android now. Yes you'll get Schmidt load of malware, poorly coded apps, poor software update support, broken and buggy OS with pure piece of Schmidt devices to put a cherry on top on the cake, but at least Android is doing all right. At least Google is not going bust. Even Wall Street believes that Google will thrive and Apple is doomed. I'm telling you, switch to Google now, or else, repent with your product that has a half-eaten fruit printed on the back of it.
What planet r u on?
He's on a planet where people will respond to his inane comments.
How do we get rid of this . . . person?
Be the change that you want to see; know what I mean?
Have at ‘er.
Since Apple has never played in the cheap market there was never any market Apple had to hand over to Google. That is all Amazon, Google, and whatever other crap no-name tablet you can find on Amazon.com.
Furthermore, what market does the Google Nexus 7 actually own? I see Kindle Fire HD's every now and then but I rarely see any Google tablets. Anecdotally that would mean the cheap, small tablet market is owned by Amazon, not Google.
Finally, you read a claim that Apple can't make production yields (despite no proof) but then jumped to some oddball claim that it's a problem with iOS. WTF?!
These claims by analysts are made as scapegoat articles. They've been claiming for a year or more now that the iPad Mini will be Retina so by saying it's a production yield they get to say they would have been right if Apple didn't muck it up.
Oh, analysts.
I'm anxiously awaiting their report that the iPad mini 2 is a failure when the iPad 5 outsells it.