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Even mighty Apple isn’t recession proof, it seems, slashing iPad 2 orders to 15m units claiming “bad economy”. Suppliers have indicated orders for the tablet king has been chopped by 15-20% for Q4, while others suggests this figure may even hit 25%.
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Other reports from JPMorgan Chase & Co last week indicated orders were cut by as much as 25%.
The reports come as a surprise to many considering the global cult phenomena that is the iPad, which sold 9.25 million units in the last quarter, according to Apple figures, and is virtually dominating the tablet market, accounting for three out of every four tabs sold in the US and 74.6% of the Aussie market.
However, it may not be just loss of business that is prompting Apple to cut back tab production.
Sources suggest Cupertino is slowing down orders ahead of launch of impending iPad 3 due out next year and may drop price of ‘2’ as a result.
Apple’s supply chain had been told it would release orders totaling 32-34m units of the iPad 2 in H2, with those in the fourth quarter reaching 17-18m units, which could not fall as low as 13m if reports are to be believed.
However, underhand tactics by Apple may also be in play, with the DigiTimes supplier sources saying it is Cupertino’s “usual tactics” to give high order estimates and later reduce the numbers, allowing it to squeeze lowest price from suppliers.
However, either way it looks like Apple are still laughing all the way to the bank.
JPMorgan analyst Mark Moskowitz expects 10.9 million iPad’s to be sold this quarter, and 12 million in Q4.
This comes as Vodafone Australia have begun offering deals on the 16GB and 64GB Wi-Fi+3G iPad 2 models, which it says will work on its new 850MHz network.
The 16GB model can be had for zero upfront at $45 a month on a 24-month deal with a 1.5GB data allowance; a 6GB data deal costs $59 a month; or users can score 12GB for $69 a month.
Read Vodafone Offers iPad 2 Deals Here
