Decline in the sale of iPad mini due to supply problem

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Sometimes it is good to be high in demand however, this is not suitable at time when there is not enough supply as to go around and the same is case with the Apple iPad currently. The firm has actually joined a growing chorus as for analysts and this worry about the sale of very popular gadgets of Apple. However, the firm is more worried for the sale of iPads than in the case of iPhones. When the sale of the iPhone 5 are on an increase and it would be surprise for the improving supply of iPhone however, in case of iPad the sales might prove disappointing when compared with iPhones.

Reason for short of iPad supply

The reason behind shortage of iPad supply is that Apple is currently struggling as with the shortage of the components of mini iPad. Most of the people who can buy the mini are going for it only instead of buying the larger versions as for the device. Hence, the overall demand for the iPad is on an increase and the supply is shortage in the market. As from past many months, Apple has been facing serious questions as if it would be able to maintain the remarkable growth in market like before or not.

Apple trying to improve availability of iPad and iPhone

The company is trying to pick up the improving yields as well as availability for the iPhone 5 as in order to increase the overall profitability of the company. The company has launched its products in many major countries of the world likeChina,Brazil,Russiaand some more other countries. The demands for the iPad mini continues to remain strong as well as same however, the shipment appears to be very limited as through supply constraints. However, the plans made for the iPad may be even reduced as due to cannibalization by mini iPad.

Decline in profit margins

The Apple as due to shortage of supply of mini iPad is facing problem as its overall profit margins are on a decrease. The investors are also fretting over because of its reduced profit margins. However, the executives of the company continue to insist that it is a temporary type of hiccup, which is being faced by company due to introduction of many new products at the same time. The iPad as well as iPhone as both are actually ceding the market share as to devices, which are running on the operating system of Google Android.

Financial results for apple in market

The companies actually cut down its stock price target as for the products and the iPhone sales are slower as in saturated markets. Some people even believe that the financial result of the apple as for this quarter as well as net quarter would be more that the actual expectations. However, there will be decline in the unit sale of products as well as decline in prices at the same time and even the gross margin pressure will be limited.


One Response

  1. Robyn

    December 16, 2012 11:08 pm

    “The reason behind shortage of iPad supply is that Apple is currently struggling as with the shortage of the components of mini iPad.”

    Do you have any evidence or a reliable source for that? Or, are you just supposing?

    Could it not be that they simply did not plan for the demand–and did not have enough production lines set up? That’s quite different from component shortages or yield rates, such as on screens.

    Appreciate it if you would update your story with some facts and discuss the difference… if it’s the first, it’ll be a good test of Tim Cook’s mettle and his vaunted sales, supply chain wizardry–or lack thereof!!


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