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Apple (AAPL -0.4%) has cut its calendar Q2 iPad Mini orders to the 10M-12M range, sources tell...

Apple (AAPL -0.4%) has cut its calendar Q2 iPad Mini orders to the 10M-12M range, sources tell Digitimes, which is generally better at reporting on supply chain activity than future product launches. The site claims the cut is due to "increased competition" from 7" Android tablets, but adds Apple is adjusting reserves ahead of a likely calendar Q3 refresh. AU Optronics (AUO -2.6%) and LG Display (LPL +0.2%) supply LCD panels for the Mini.
Comments (17)
  • bgold1955
    , contributor
    Comments (2041) | Send Message
    We have heard this type of speculation dozens of times before. It could be due to increased competition but more likely to a refresh.
    28 Mar 2013, 10:08 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6086) | Send Message
    Yep, the deal is that it isn't a cut in order expectations. Sure AAPL is ordering more in front of a refresh, but it isn't cutting the expected numbers. This type of reporting is absurd.
    28 Mar 2013, 03:45 PM Reply Like
  • u01bsb0
    , contributor
    Comments (633) | Send Message


    might be suggestive of a strong apple quarter.
    29 Mar 2013, 08:36 PM Reply Like
  • chabig
    , contributor
    Comments (554) | Send Message
    Also, Tim Cook specifically mentioned in the last conference not to read too much into these rumors. Apple's supply chain is too complicated to infer anything meaningful from these rumors, and no company manages their supply chain better than Apple.
    28 Mar 2013, 10:23 AM Reply Like
  • Applocrat
    , contributor
    Comments (915) | Send Message
    Android is the perfect boogeyman, large amorphous and obscure show me an android tablet that is selling well. Show me SALES data that confirms this
    28 Mar 2013, 11:17 AM Reply Like
  • zakwill
    , contributor
    Comments (26) | Send Message
    I think Tim Cook is the worst replacement CEO I have even seen. he is not worth a tenth of Hastings. pathetic way to run a company, which used to be the greatest company ever told.


    he needs to be replaced.
    28 Mar 2013, 11:40 AM Reply Like
  • ControlledRisk
    , contributor
    Comments (269) | Send Message
    Hahaha...Hastings?! You're kidding right?
    28 Mar 2013, 06:45 PM Reply Like
  • davioud
    , contributor
    Comments (32) | Send Message
    one more nail in the coffin for apple. it will end like sony.
    28 Mar 2013, 02:19 PM Reply Like
  • John1138
    , contributor
    Comments (161) | Send Message
    A Calendar Q3 iPad mini refresh is good news, not any sort of "nail" from my viewpoint.
    28 Mar 2013, 02:49 PM Reply Like
  • jmok322
    , contributor
    Comments (8) | Send Message
    Agreed John1138...think it is to accommodate the new iPad mini with the retina display
    28 Mar 2013, 03:03 PM Reply Like
  • u01bsb0
    , contributor
    Comments (633) | Send Message
    It would be good to see the name of these "sources" to see how strong a source they actually are...
    28 Mar 2013, 03:03 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
    they are no longer selling well. Too expensive after holidays.
    28 Mar 2013, 03:16 PM Reply Like
  • imac007
    , contributor
    Comments (504) | Send Message
    Tim Cook is one of the world's leading supply chain experts. In 6 years Apple has had to build out production capacity to over 6 phones per second. Year over year worker increases of over 300,000 to keep up to new capacity. Increasing supplier capacity to allow that production, is also supported. That doesn't include iPads, iPods or computers. The balance sheet shows an investment of 2.3 B in the last quarter alone for property, plant and equipment. Imagine growing so fast you have to build out infrastructure for your suppliers to keep up and still can't. On Jan 23 they still hadn't caught up from their Sept launch. iPhone 4's and iPads were still not available online until late Feb.. They never stop growing out capacity. Finally, near the end of Mar., they have caught up and are cutting back from full ramp. And, now a whole new cycle of training and re-tooling for the next generation assembly starts. 1.5 M employees to retrain and 100, 000 new ones to recruit and train. Add sourcing new suppliers to add to the old.. They invested $1 B on R&D and over $2.3 on building out production capacity and they don't actually do the production themselves, just put the pieces of the puzzle together. A massive endeavor for which analysts behind a calculator have no real appreciation. They project a 30% increase based on last year with no consideration of what that entails. There was no factoring of last year was a 14 week quarter and this week was only 13. A single week translates into over 3 million phones. But when Apple reports 47.8 M phones sold and analysts estimate 50 M would be a 28% increase, they are disappointed when in fact it was a 29% increase if you do a per week analysis. Buying stocks is about buying a company. Do you want to buy into a company growing so fast that it can't keep up and still provides quality and a great customer experience? Learn to read the balance sheet. Listen to the conference calls. The theme word was constrained. It was mentioned several times and refers to the challenge of growing capacity to keep up with demand. If having to wait a couple weeks for a phone was costing them customers it would be an issue. But, I don't believe that is true. People who decide they want an Apple phone will wait for one. They are either replacing one or they have wanted one, a short wait will not change that. Bottom line is, research the companies thoroughly and understand their customers. Then decide if you would want to own the company. Ultimately shareholders are owners.
    28 Mar 2013, 03:31 PM Reply Like
  • lpcongas99
    , contributor
    Comments (129) | Send Message
    The techies & chart reader's better at that than me, but there is something distinctively wrong with how apple is treated. by the market, by the media,maybe even gov't's,both foreign & USA.


    maybe the liberal media doesnt like the treatment of its foxconn worker's, i just have never seen or heard such negative press about apple. maybe some of it is warranted.
    Maybe its just they are not playing wall st game. does street want more buybacks?bigger dividend?less dividend?no dividend? better utilization of cash? something is different and its not all Jobs to Cook transition.
    if this stock doesnt rally monday or Tuesday, its going down another 50 pts from here...........
    28 Mar 2013, 04:49 PM Reply Like
  • 603
    , contributor
    Comments (2) | Send Message
    IMO @realornot and davioud's collective certitude about the death of Apple and Nail in the coffin talk is merely inflammatory and manifestly subjective. On the other hand, head in the sand comments that all is fine and a product refresh is the silver bullet is equally niave and subjective. Objective data, not rumors and blogpost economist opinions are what matters. Apple sold 51.1 million units across all of their major product categories. Can they do it again, and again, and again. I dont know. Nobody knows, and any tool on here who thinks they do know... is just that. A tool of some agenda or another.
    28 Mar 2013, 05:36 PM Reply Like
  • davioud
    , contributor
    Comments (32) | Send Message
    numbers ,sales, profit this is what count and until they beat their estimates ( which they did not in the last few quarters ) they are dead money. stop blaming the others.
    28 Mar 2013, 06:17 PM Reply Like
  • imac007
    , contributor
    Comments (504) | Send Message
    OppThe launch of the iPhone 5 initiated in September was massive. Over 30 countries in one week and over 100 before Xmas. A significant ramp in production. How long do you maintain that level of ramped production? The answer is until demand slows enough to finally slow down. That time has come. The speculation of low-end iPhones is just that. When they have about half of the US revenue and 70+% of the industry profit I question the wisdom of going to the low profit end of the spectrum? The ipad 4 launch suggests another strategy. Every product refresh equals a surge in sales. More frequent refreshes should reduce the tendency of a pre-launch lull in sales. With ramp capacity increased, the machinery is now in place for them to enjoy more frequent surges in sales. Retention will be the Android issue. AT&T have already confirmed that Apple retention is incredible. I see it in my family. Loyal Samsung users who gave Apple a try and at this point never plan to return. If iOS was available as open source, Android would be like a floppy disk, a thing of the past. Customer retention and a growing customer base is how Apple grew over the years. Many of the current buyers are existing customers going for a product refresh as their contracts expire. I see that more and more mobile phone providers are adding the iPhone to their wish list. Japan's largest mobile operator is losing subscribers because it isn't on board, yet, but is in the news saying they want a deal. T Mobile are now on board.
    A cheap iPhone would act like the Kindle devices that Amazon admit they sell for cost. It acts as a shopping cart the customer paid for. Apple could do that to sell music and apps but is it worth it? If they decide to add a lower end iPhone it is likely that projections tell them it makes sense. Adding a retail eco-system with services with strong security like the fingerprint technology they got when purchasing AuthenTec and combining it with the wifiSlam purchase, for in-building location capability, would benefit from massive adoption of iOS devices. A suite of cloud services piggybacking on using local wifi, gyroscope info, accelerometer and GPS info from all iOS on-site devices to pinpoint location. Groupon-like offers, product location services, manufacturer offers, "friend" location services. Enhanced customer experience for a subscription fee. Add analytics, like, offer effectiveness, personal customer offer targeting, traffic pattern analysis, POS security with fingerprint security. And with that sensor technology on the phone you can ensure top level security for all Enterprise demands. That dead money looks to rise like Phoenix.
    28 Mar 2013, 08:27 PM Reply Like
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