iPad 2 Sales Forecasts Weaken: Component Shortages May Hit

The success of the Apple iPad 2 since it’s launch last month has been nothing short of phenomenal. A couple of weeks ago we told how initial sales forecasts had been raised following the massive early sales but we now hear that iPad 2 sales forecasts have weakened following concerns about component shortages.

This tablet, which seems to set the standards for other tablets, simply took off and surprised everybody with the sheer numbers of initial sales but our attention has been drawn to an article by Fred Straker over on The iPad Guide who informs us that although shipping times are now down to 1-2 weeks from 5-6 weeks at one time, the failure to meet initial demand, means that forecasts are down. For example ISH iSuppli has reduced its forecast for sales of the iPad during 2011 from 43.7 million units to 39.7 million.

Other analysts at JPMorgan and Merrill Lynch have also reduced their sales forecasts but their initial forecasts were much lower to begin with. JPMorgan now predicts 27.3 million annual sales of the iPad while Merrill Lynch puts the figure at 26.4 million. Second quarter sales reported by Apple for the iPad were lower than anticipated because of supply shortages, at 4.7 million, and now the component shortages that are causing concern for future supplies involve the LCD displays, along with the speakers used.

Despite this Apple still reached overall revenue of $24.7 billion for its second quarter. Sam Oliver over on Apple Insider also reported on reduced sales forecasts for the iPad and notes that Wall Street analysts originally forecast Apple second quarter sales of the iPad at 6.2 million. Tim Cook, Apple COO described keeping production up with demand for the iPad 2 as “the mother of all backlogs.”

Are you surprised that Apple was not fully prepared for just how popular the iPad 2 would be, or do you think nobody could have predicted its phenomenal success? Let us know with your comments.

  • Jim

    Although it's still difficult to find an iPad 2, they're popping up a lot more often on sites like iPad2Tracker.com. Hopefully with the third touchscreen manufacturer added last Thursday, Apple will be able to meet supply a little more quickly.

  • http://wallpapertablet.com/ Scotty

    Steve Jobs and the rest of the company should not worry if they did not meet their sales predictions. After a huge 1st Quarter, it is really tough to beat though not impossible. Of course, nobody is expecting that Japan will be hit by a huge disaster. Apple is not the only company that was affected by this incident. In due time, the manufacturing issues will be resolved.