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iPad 2 Supply To Improve As Apple Addresses Production Issues

The production issues that have affected the iPad 2 manufacturing process have now apparently been largely dealt with and the tablet’s availability should improve. Due to the retooling and conversion of Apple’s production lines across the Far East, the company is now able to solve the supply problems it had last quarter, according to analyst Shaw Wu from Sterne Agee.

The analyst also added that the company has not yet reached its internal goals. It was expected that Apple would ship 45 million iPad 2 units in 2011, but supply shortages have made these estimations drop. Due to the improvements in production, Shaw Wu has stated that Apple could sell 6.8 million iPad devices in Q3. He had previously estimated that the company would sell 5.9 million devices in Q3.

The analyst also said that Apple could sell 17 million iPhones, increasing his initial estimation of 16 million. He added that the white iPhone 4 sales and good Verizon sale levels had helped the iPhone demand remain solid. Wu declared that Q3 Mac sales could reach 3.9 million units after he previously estimated Mac sales of 3.83 million. Following higher iPad yields and improved iPhone sales, the analyst also increased his gross margin estimation, from 38.3 % to 39%.