iSuppli Slashes Forecast for 2011 iPad 2 Shipments
Although the headlines have quieted down with talk of lingering iPad 2 production and shipment delays, the underlying problems that left many waiting weeks for a second-generation tablet continue to threaten the timeliness and availability of iPad 2 stock for the foreseeable future.
Earlier this week during Apple's earnings call, the company's Chief Operating Officer Tim Cook bluntly acknowledged the ongoing supply problems and called iPad 2 demand the reason for Apple's "mother of all backlogs." Given Apple's own admission of the the problems in question, no shortage of industry and Wall Street analysts are beginning to scale back their iPad 2 shipping estimates for the remainder of 2011.
On Friday it was reported that iSuppli has slashed its 2011 sales forecast by 4 million units (down to 39.7 million). And that number may continue to fall as further evidence mounts that component and production setbacks aren't yet turning around.
"IHS iSuppli sources indicate that Apple's production was stymied by manufacturing difficulties, which--combined with strong demand--led to short supplies of the popular tablet," the firm's report stated. "Those issues, according to the sources, included quality concerns with liquid crystal display (LCD) panels, production shortages of the new speaker, lamination issues with one of the touch suppliers, and end-unit production shortfalls."