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back to article Apple plots iPad 2 production reduction

Apple has allegedly reduced the number of iPad 2s it wants its contract manufacturer to churn out. If true, the claim suggests Apple may indeed see the iPad 2 simply as small-scale upgrade ahead of the introduction of the iPad 3 later this year. Industry moles cited by Taiwanese trade site DigiTimes say Apple originally wanted …

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  1. Annihilator
    Alert

    Or

    Apple know that in the usual fashion, if they don't make enough to meet the initial demand, they'll attract more attention/interest in the latest device. If it's seen to "sell out", it will be seen as "must have" and attract even more buyers to lap at the teat of SJ.. (disturbing image?)

    They're not daft, and have pretty much done this with every release. The phrase "marketing genius" comes to mind.

    "So much to do at Cartman-land, but you can't come (specially you Stan & Kyle)"

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  2. Select * From Handle
    Jobs Horns

    OR?

    it could just be that they didn't sell as many as they were letting on?

    (Apple staff - "sorry you cant buy this item its out of stock at the moment please pre-order one for when they arrives" strangle the supply tactic to make people want the item more)

    I have only ever seen one of these items out in wild! which makes me believe that it was just a load of apple media hype.

    So this time round they know more about the market for tablet items and reduced the stock order.

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    1. Ammaross Danan
      Reply Icon
      Boffin

      Market

      A common tactic to justify higher prices is be having a shortage. Look at what Hurricane Katrina did in Texas (USA). The oil refineries being offline created a shortage causing gas costs to spike. The oil companies, even when the refineries came back online, kept production lower to create a shortage, thus being able to justify keeping prices higher. (The government has a restriction on oil companies to prevent them from raising prices more than a certain amount, except when a shortage occurs). Apple is doing the same thing: create a shortage to cause Sheeple to pre-order to ensure a sell-out at a predictable number.

      The other driving factor will be those that wanted a tablet, but bought one of the now readily available alternatives. With the scores of tablets coming out this year, Apple's market share (and perhaps quantity of units sold) will obviously reduce simply due to alternatives in the market.

      The sad thing to speculate is if they're cutting due to a "significantly upgraded" iPad3 coming out later in the year, that means they expected to get away with forking out yet another sub-market-standard device at a premium. This is what Apple users don't realize: the hardware they are getting is only physically worth half of what they're being charged. The brand name and the "Oooo" factor makes up the rest of the device's cost.

      Unfortunately, with the "subscription-gate" FUD leaking into the rest of the world due to the "your subscription services must be the same InApp as through other channels" line of the "agreement," causing a likely inflation of subscription prices globally, that Apple can no longer be viewed as a self-contained fringe monopoly.

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      1. Anonymous Coward
        Reply Icon
        Thumb Down

        Another clueless poster...

        > the hardware they are getting is only physically worth half of what they're being charged. The brand name and the "Oooo" factor makes up the rest of the device's cost.

        Bollards!

        Does that mean you think these other aspects of getting a product to market cost nothing?

        a) research and design

        b) distribution

        c) building and testing the OS and other software

        d) advertising & marketing

        etc.

        > forking out yet another sub-market-standard device at a premium.

        Apple's iPad is priced cheaper than comparable Android based tablets:

        http://www.pcworld.com/businesscenter/article/205722/apple_ipad_the_lowprice_leader.html

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  3. Charlie Clark Silver badge
    Jobs Horns

    Anything to stay in the headlines

    Apple is desperate not to lose their iconic status for these personal media players and spinning rumours of impending new versions is essential to encourage people to "buy the original" or "wait for the next version" rather than buy from the upstarts who now have access to both hardware and software of similar quality.

    So if, when the Xoom launches, the media are still talking about Apple then they will be happy. Apple's biggest fear is if the media simply debate which Android tablet is the best.

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    1. DrXym
      Reply Icon

      I think the debate will turn that way soon off

      I don't have high expectations for the Xoom, but it's the first of many non-Apple tablets this year.

      With phones the debate quickly turned from Android vs iPhone to which smart phone was the best. I think the same will happen for tablets.

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  4. Ian Ferguson
    Jobs Horns

    It's really bloody annoying

    I want to know whether to source ten iPads for work now, or next week when there *might* be an improved model. I wish Apple would realise how they screw over their customers (increasingly corporate, too) by never announcing release dates. If I knew for certain that new iPads came out in March and new iPhones in June, I could plan purchasing so much better.

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    1. Anonymous Coward
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      D'Oh!

      If the current iPad does everything you need it to, right now - then buy it now.

      If an improved model does come out next week or next month, that doesn't mean the current model suddenly becomes less capable than it is today.

      Apple's mobile product release schedule is more predictable than most manufacturers. It's annual. New iPods in September, new iPhone in June - it's been like that for years.

      Or do you really prefer companies that pre-announce products months in advance, only to keep missing those self-imposed deadlines?

      RIM have announced three generations of PlayBook tablets in the space of five months and yet we still haven’t seen a single product make it to market. Could you plan your purchases with that kind of announcement?

      http://www.loopinsight.com/2011/02/16/rim-needs-to-shut-up-and-ship/

      When Apple announces a new product it is generally instantly available to buy, or very shortly afterwards.

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    2. Michael Hawkes
      Reply Icon

      One way to look at it

      While it is annoying when they don't conveniently announce product releases, it even more annoying when they announce something that doesn't get released, such as the mythical white iPhone 4. My guess is they're hedging their bets, rather than intentionally keeping people in suspense.

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    3. Chad H.
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      Just wondering...

      Just wondering if you tell cour competitors what you're doing in advance?

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    4. g e
      Reply Icon

      Oh I'm quite sure

      they know how they screw people over.

      And how much money it makes them.

      Perhaps they reduced volumes because their CUSTOMERS starting noticing how they get screwed over and projected demand slipped.

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  5. sleepy

    Sounds more like . . .

    . . . a one week delay in new model production ramp-up, than a permanent reduction in run rate.

    One of a number of stories trolled in the last day or so to camouflage another price manipulation of AAPL share price via short selling. (others: iPhone 5 delayed; Steve Jobs dying).

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  6. Anonymous Coward
    Anonymous Coward

    Who cares?

    Boooooring. Why care so much about one product's release schedule when there are superior offerings coming to market any day now. It's not as if the is some standard bearer.

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    1. Anonymous Coward
      Reply Icon
      FAIL

      You do

      You obviously care enough to have bothered to click, read the article, then post a comment on it.

      And since Apple has not even announced the "iPad 2" (which is an update to a YEAR OLD product), how do you know these devices "coming to market any day now" (yeah, right!) are superior?

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  7. TheOtherHobbbes
    Go

    If it's a Tony Smith rumour

    it's traditional for it to be bollocks.

    First it was Q4 2010 - nope.

    Then it was "in time for Christmas" - uh uh.

    Next we had "in time for Valentine's Day" - nope.

    Now it's early March.

    My money is on an announcement in April and almost instant shipping - but since I don't know any more than anyone else does, that could be bollocks too.

    What isn't bollocks is that the carriers have quietly switched to £99 down, 24 month deals, presumably to clear out old stock.

    Since Plan Jobs seems to be to make money from content subscriptions, I wouldn't be surprised to see some no-money-down deals within the next 12 months.

    It would be epic PR, it would kill the competition, and it would make more money in total than charging £400-£500 up front and hoping that punters also get a data plan.

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    1. DrXym
      Reply Icon

      Epic PR is not that

      Epic PR would be Apple producing a tablet which requires no contract at all. None. Just buy the thing, turn on and you have internet.

      It may be that internet is restricted to the app store and other Apple services, partners (and ads) but it would be automatic. Wider internet might also be possible if you bought a day / week / month pass through the store. But how it happens or with which network is completely irrelevant. It just happens. Theoretically it could happen when you roam too but I suspect it won't especially if iPads got sold through phone shops.

      This sounds far fetched but it isn't. Kindle does it, and Apple could too. I suspect Sony is angling to do something similar when its NGP turns up. Devices that expect you to fiddle around with data plans and SIMs and roaming charges are suddenly going to look very clunky and old fashioned indeed.

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  8. Anonymous Coward
    Troll

    Blah

    I won't be able to sell it anyway. Apple gives my company Australia-wide like no more than 6 of any given model to a fraction of stores per state. I can't order them and good luck arranging for one to be held while the customer rushes over. Just so they can be greedy little goblins and sell them from their own premises. They can have my potential customers, every last idiot who bought into the hype.

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  9. Tigra 07
    FAIL

    Bad reportating today...

    Or they're under supplying to create a rush for their crap like they did with the iphones and last ipad.

    You reported on this before Reg and miss it out as an option now?

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  10. Mark .

    Needs a few more allegedlys

    "Apple has allegedly reduced the alleged number of alleged iPad 2s it wants its alleged contract manufacturer to churn out. If true, the alleged claim suggests Apple may indeed see the alleged iPad 2 simply as small-scale upgrade ahead of the introduction of the alleged iPad 3 later this year.

    "If that is true, then this may see the alleged iPad 3 followed by another iPad, which allegedly is rumoured to be called the iPad 4."

    Anyhow, isn't half of zero still zero? The product isn't even announced.

    (Comparison to Nokia - if no one's going to buy a Nokia phone now that they've announced a future change in technology, by that reasoning, is no one going to buy an iPad, because a new one is announced, sorry, rumoured? Can't have it both ways.)

    "And since Apple has not even announced the "iPad 2" (which is an update to a YEAR OLD product), how do you know these devices "coming to market any day now" (yeah, right!) are superior?"

    Well then, I assert the new not-even-announced "AmigaPad" is superior to anything coming to the market.

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