According to a report written by JPMorgan Chase & Co, Apple has reportedly cut orders of iPad components for the holiday quarter by 25 percent. This move may lead to drop in manufacturing from the seventeen million iPads manufactured in the third quarter to thirteen million units ahead of the all important holiday shopping season.
According to Bloomberg:
Several supply-chain vendors indicated in the past two weeks that Apple, the world’s biggest company by market value, lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan’s electronic manufacturing services team in Hong Kong said they have ever seen. The report did not list the affected companies.
JPMorgan analyst Mark Moskowitz says that Apple will manufacture about 10.9 million to twelve million iPads in the third and fourth quarters. This step is similar to what happened early this year when Apple decided to reduce orders of iPad 1 ahead of the iPad 2 introduction.