Date: Monday, May 23rd, 2011, 03:41
Category: iPad, News
In spite of the Japanese earthquakes and tsunami back in March, iPad 2 production restraints that affected Apple last quarter are said to have “significantly improved,” allowing for improved availability of the tablet.
According to AppleInsider, Analyst Shaw Wu with Sterne Agee said Friday that Apple has found better yields in iPad 2 production through retooling and conversion of more overseas production lines. These changes have gone a long way in addressing the supply issues Apple experienced last quarter.
Wu also cautioned that Apple is along way from meeting its internal goals for iPad 2 production. Previous rumors suggested Apple could ship as many as 45 million iPad 2 units this year, though predictions have dropped since Apple’s last quarter fell short of expectations for iPad sales.
“From our understanding, [Apple] still has a ways to hit the [second half] goal of 3-4 million units per month but getting closer,” Wu wrote.
Accordingly, Wu has increased his estimates for iPad sales in the current, third fiscal quarter of 2011 for Apple. He now sees the company selling 6.8 million iPads, up from his previous prediction of 5.9 million.
Wu also increased his estimated iPhone sales to 17 million, up from 16 million. He said iPhone demand appears to be holding up better than expected, thanks to strong adoption of the white iPhone 4 and strong sales on Verizon.
Wu also increased his projected Mac sales to 3.9 million from the quarter, up from 3.83 million. He is also assuming a new, higher gross margin of 39%, increased from 38.3%, due to improved iPad yields and higher iPhone sales.
Finally, he’s also increased Sterne Agee’s 12-month price target for AAPL stock to $460, up from the previous prediction of US$445.
So, if you want an iPad 2, odds are the one you want should be available.
Stay tuned for additional details as they become available.
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