Recently, Apple has reportedly made significant cuts to orders for iPad parts from its suppliers. According to analysts, Apple has lowered orders for the last quarter of 2011 by 25%, a rate which JP Morgan's electronic manufacturing services team says is unparallelled, and this may result in slower sales of iPad tablets.
The decision is expected to affect iPad sales of vendors such as Hon Hai Precision Industry Co. Hon Hai could face a drop in sales from 17 million units in the third quarter to 13 million units in the last quarter of 2011.
This might not merely be down to the lower demand from the European market due to economic conditions here, but may also represent a shift in strategy for Apple to operate with a reduced inventory.
While Apple has refused to give any explanation about the situation, the stock market has reacted slightly. However, Apple's position within the tablet market is stronger than ever claiming 73%, while the competition has failed to produce any strong rival product. The second place is held by Android tablets, including Samsung's Galaxy range.
We are interested in seeing whether the upcoming Amazon tablet will be able to shake the other Android tablets or even pose a threat to the iPad.