“Sharp Corp has nearly halted production of 9.7-inch screens for Apple Inc’s iPad, two sources said, as demand shifts to its smaller iPad mini,” Reiji Murai and Miyoung Kim report for Reuters.
“Sharp’s iPad screen production line at its Kameyama plant in central Japan has fallen to the minimal level to keep the line running this month after a gradual slowdown began at the end of 2012 as Apple manages its inventory, the industry sources with knowledge of Sharp’s production plans told Reuters,” Murai and Kim report. “The sources didn’t say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini and were unable to characterize Apple’s overall tablet sales.”
Murai and Kim report, “Any indication that iPad sales are struggling could add to concern that the appeal of Apple products is waning after earlier media reports said it is slashing orders for iPhone 5 screens and other components from its Asian suppliers… Apple, the reports said, has asked state-managed Japan Display, Sharp and LG Display to halve supplies of iPhone panels from an initial plan for about 65 million screens in January-March. Apple is losing ground to Samsung, as well as emerging rivals including China’s Huawei Technologies Co Ltd and ZTE Corp.”
MacDailyNews Take: Fictitious numbers. Please see:
• Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
• Apple supplier sees significant sales increase in Q4, likely positive sign for iPhone 5 demand – January 16, 2013
• Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
• The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
As for “losing ground”:
Market share is mistakenly being used by Wall Street [and Reuters reporters – MDN Ed.] as a proxy for platform value and dominance. According to comScore, as of November 2012, Android is ahead in market share at 52.6% versus Apple at 34.3%. However, Apple generated 71% of the entire mobile industry’s operating profits, according to Canaccord. In any other industry, the analysis would end right here, as investors and analysts would never seriously contend that market share is more important than profit share. – Bert Danner, January 11, 2013
Oh, and BTW:
• Raymond James analyst: Apple iPhone outsold Samsung 1.7 to 1 over the last 10 quarters – January 17, 2013
• Apple iPhone takes 53.3% of U.S. smartphone sales, Android falls to 41.9% – January 7, 2013
Murai and Kim report, “In addition to Sharp, Apple also buys iPad screens from LG Display Co Ltd, its biggest supplier, and Samsung Display, a flat-panel unit of Samsung Electronics… A source at Samsung Display, however, said there had not been any significant change in its panel business with Apple, which has been steadily reducing panel purchases from the South Korean firm. A person who is familiar with the situation at LG Display said iPad screen production in the current quarter had fallen from the previous quarter ending in December, mainly due to weak seasonal demand that is typical after the busy year-end holiday sales period. Apple’s iPad sales may have suffered amid a weak Christmas shopping period that hurt other consumer gadget makers as well.”
MacDailyNews Take: Yeah. Or not. 4:30 pm EST next Wednesday cannot arrive soon enough.
Murai and Kim report, “Apple also faces stiffening competition in tablets from a growing crowd of rival products from makers including Samsung with its Galaxy and Microsoft Corp’s Surface.”
MacDailyNews Take: Holy fsck. Are they kidding? Is this a joke?
Read more in the full article here.
MacDailyNews Take: The attack on Apple’s mind share and share price, which seems to be emanating out of Japan (first Nikkei and now these “industry sources with knowledge of Sharp’s production plans,” continues unrelentingly.
Related articles:
Apple executed huge initial iPhone 5, iPod touch production ramps for holiday quarter; dialing back display orders doesn’t necessarily equal popularity drops – January 16, 2013
” 4:30 pm EST next Wednesday cannot arrive soon enough.”
AMEN!
It will also be great to get past today’s options. It looks like the $500 option is the battle point this time. They will say or do anything to manipulate the price. (They make their crap up anyway.) I wish Apple would push these clowns off the quarterly questions and tell Walt that he will no longer get pre-release products for his reviews while working for the parent group.
Losing ground to Samsung…f*** yeah…let’s bounce a few fictitious numbers around and draw a couple of half ass conclusions.
Let’s see now, total number of Samsung Galaxy S, Note and various other smartphones/tablets sold since 2010: 100 million. Total number of iPhones sold in the equivalent period: 220 million. Hell yeah, 100 million is greater than 220 million in Reuters’ upside down world.
I would believe that the 9.7″ is not nearly as popular amongst consumers now that the iPad mini is available. It is entirely possible that Apple therefore had to reduce manufacturing orders for it and focus on producing more of iPad minis instead.
They Are switching to IGZO screens. 😉
…But don’t tell anyone until we’ve dump trucked our cash into AAPL.
Yes, and the sky MAY also be falling.
Is it possible to investigate how many of these Apple banshers are buying Apple stock? Would it be considered insider trading to right fictitious article to drive stock down, only to buy back on the up swing? I think it should be investigated.
Here is a great example:
http://m.cnet.com/news/apple-is-done-say-teens/57563665
Is it public access to see personal stock purchases by an individual? I guarantee half these meatheads that bash Apple with totally negative articles are buying Apple stock behind closed doors.
Anyway, most of the old-time Apple-hater Stock Market Guru’s will be dead or retired in the next decade or so. I just hope Tim Cook, Johnny and the other brains behind Apple can out wit them till then.
AGAIN with the (same) 65M number?
To avoid accusations of formenting, the guys making the comments are not the ones buying the shares. They are provided the leads in whispers and then run with it. Cramer explained it well. Just like playing consequences as a kid.
As for Gore – he’s been on the Apple board for a decade. The stock options are above board and only a fool would turn the opportunity down. I’m ambivalent about the guy and assume he does an okay job on the board. He’s probably there for his DC connections.
AGAIN with the 65M number?
Captain obvious here, do they mean 1024 x 768 9.7″ screens or 9.7″ retina screens? iPad 2 sales have got to be waning given that it’s nearly 2 years old and the iPad mini is cheaper and more portable. Apple will be gearing up production for the new versions of the iPad and mini so this isn’t a surprise. Still I’m not a highly skilled journalist like these guys, anyone would think they’re trying to move the market with half a story.
Dr. captain Obvious:
Your total approach to asking the right questions at the right time makes you totally unqualified to post to this forum. Therefore, I bestow to you the “smartest Person Here” award.
God point they did not say they were cutting iPad Retina displays just iPad displays so they are phasing out the iPad2 is all.
Or the could be switching to Sharp’s new IGZO displays which has been widely rumoured for months.
They may meant usual, not IGZO-screen’s production. This could be stopped, but IGZO-version of screen might go running in preparation of 5th generation iPad release in March.
OK. So I think we should start our own rumor….
MacDailyNews reports, according to an inside source, Apple has over the last year been secretly investing in development of an advanced holographic display technology and manufacturing facility in CA. The new technology is far superior to OLED and is a derivative of IGZO. Apple has been able to manufacture material in size equivalent to a 42″ 8K UHD display. Inside sources also indicate all iPhone and iPads will be converted to this new display technology enabling the next level of user interaction in iOS7 currently in development and being led by Jony Ive.
More information as it is available.
Was Sharp ever a supplier for iPad screens. I thought LG, Samsung and AU were the three main suppliers because Sharp wasn’t able to produce enough IGZO LCD screens to meet iPad demand.
Someone should make a note of all these Apple related FUDs and question these analyst with unknown sources after Apple releases the real numbers.
Anal-ysts continues to make up stories with anything related to Apple. I am wondering whether their bullish*t are covered by 1st Amendment of US Constitution… sigh…
Next thing we will hear from those ANAL-ysts probably will go something like the following…
“Apple cut down toilet paper orders worldwide from 1M rolls per month to 999K per month, this MUST indicate Apple’s large scale layoff is just around the corner…”
Oh no, another prediction is it what we going see on a daily bases, don’t we have an more creative news rather than keep repeating the same old topics….
We already learned this is myth mongering horse shite earlier this week. But the dumdums and manipulators insist up being wrong:
Apple is losing ground to Samsung, as well as emerging rivals including China’s Huawei Technologies Co Ltd and ZTE Corp.
As soon as there is any verifiable reality to a rumor, I care about it. Until then, I’ll laugh at stupid and evil. 😆
One bottom line is that, whatever truth may be, this stuff is out there and people are reading it and being affected. The “streets” live to hate Apple – I’ll never understand it.
Yes another reason stock prices will go down like anything…
Another possible explanation. After posting more than a $5 billion loss and announcing a restructure, Sharp is at risk of insolvency. Sharp’s troubles might be so serious in Apple’s eyes that they’ve decided to pull the plug.