We have been hearing about the iPad mini for quite a long time. Apple products are generally awe-inspiring and since Apple has a huge fan base, any polished device which they manufacture just sells, and analysts also think the same.
Looking at the demand of iPhone 5 which is not that revolutionary and comes with major bugs in frequently used apps such as Apple Maps, we feel that iPad mini will also attract huge demand up to a point where demand is more than supply. We have already written about the weeks of waiting time that iPhone 5 is facing and the culprit being the availability of display screen units which make use of new technology that is helpful in making the device slimmer by a substantial amount. The iPhone 5 has been launched for 2 weeks now and the device still faces at least 3 weeks of waiting period before the user can lay his hands on the device.
If you wondering how many iPad minis are Apple planning to sell this holiday season, it actually depends on how much it can produce. According to the recent reports, the Cupertino based technology titan is facing problems with obtaining some of the components that is used in iPad mini. Apple is always known to make use of smaller sized components that are specially manufactured for Apple by various other suppliers. This is what analysts had to say about the topic:
“Despite continued yield challenges, the supply chain feels the much anticipated iPad Mini is on track to reach acceptable volume levels for a launch over the next month,” Topeka analyst Brian White wrote in a note. “That said, we believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch.”
According to rough estimates, Apple is looking forward to sell around 5 to 7 million units of this device. Yes, that is indeed an optimistic number and Apple is working towards obtaining the launch quantity required to have a smooth launch. According to another report from Brian White, an analyst at Topeka Capital Markets who is currently in Taiwan meeting various component suppliers which supply critical modules for companies such as Apple and other companies. According to White, Apple is facing major issues with obtaining several components for iPad mini and this can hamper the first month of availability heading into the holiday shopping season.
This is what the report says:
Similar to the iPhone 5, we sensed that suppliers have found the specs around Apple’s (AAPL-$671.45: Buy) 7.85-inch “iPad Mini” to be a challenge and yields have been frustrating. In our view, this is the reason the “iPad Mini” is 4-6 weeks behind our original launch expectation that we discussed in June. Despite continued yield challenges, the supply chain feels the much anticipated iPad Mini is on track to reach acceptable volume levels for a launch over the next month. That said, we believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch.
We hope Apple will be able to have a smooth launch. What are your thoughts on this? Let us know using the comment form below.