Apple's build plans for its touchscreen tablets are well above analysts' predictions, despite recent concerns from some in the market, Apple Insider reports.
The information comes in response to a report published early this week that suggested Apple has cut production orders from suppliers by 25 per cent. The rumour managed to scare some investors and sent the AAPL stock price slightly downwards.
News regarding Apple's plans for iPad and iPad 2 production are based on Apple's strategy to set production orders 25 - 33 per cent above actual shipments. "This takes into consideration rush orders, buffer inventory, component lead times, yields, and potential disruptions like the plant explosion back in May," explained Shaw Wu, analyst at Sterne Agee.
The 20 million iPad 2 units built this quarter, represent a 60 % growth in sequential shipment. An obvious advantage of this production strategy is that by building in scale the costs become lower, thus benefiting both consumers and suppliers.
The shipment estimates for the iPad are also encouraging for the second half of this year. According to Shaw Wu, Apple is expected to sell 27 million iPad units by December: 12 million in the September quarter and another 15 million in the following quarter. Slightly less optimistic forecasts are provided for Apple by other Wall Street analysts, predicting sales of between 24 million and 26 million for the same period.