iSuppli ups iPad forecast to 63.3 million units in 2012 as Apple’s key component supply improves

Amid indications that iPad component availability is improving, iSuppli Corp. is raising its shipment forecast for the product to 13.8 million units in 2010, up from its July outlook of 12.9 million.

Apple in its earnings announcement for the fiscal fourth said it shipped 4.2 million iPads during the three-month period ending September 25. The pronouncement indicates that Apple has been able to overcome limitations in component supply so that it can ramp up production.

“In its previous iPad forecasts, iSuppli noted that the only constraint on shipment growth now is production—and not demand,” said Rhoda Alexander, director of monitor research for iSuppli, in the press release. “The only factor limiting production is the availability of key iPad components, such as the Field Fringe Switching (FFS) LCD panels, projected capacitive touch screens and NAND flash. Despite ongoing yield issues, Apple’s suppliers have steadily increased monthly production to meet Apple’s demand. Production rates are now on target to meet the expected strong fourth-quarter sales.”

By end of year, iSuppli expects the iPad production rate to approach or exceed 2.5 million units per month. With Apple bringing on additional suppliers in 2011, iSuppli also has increased its 2011 shipment forecast to 43.7 million units, up from 36.5 million, and expanded its 2012 outlook to 63.3 million units, up from 50.4 million previously.

Beyond its rising production, iPad sales also are benefitting from improvements in Apple’s retail strategy.

“In addition to its traditional channels, Apple now is expanding to sell the iPad through new retailers, including Amazon, Target, Verizon and Walmart,” Alexander said in the release. “Apple has moved more rapidly than expected to push the iPad out to new retailers, which will give it maximum retail presence during the critical holiday sales period.”

Demand for the iPad is rising as users find new ways to use the product to replace tasks previously done on or with paper.

Interest from the education sector also is increasing even as Apple has yet to offer incentives to the education segment to purchase iPads. However, the company is expected to offer those kinds of packages in 2011 and beyond, similar to deals that Apple currently offers on its laptops to students and teachers. As usage increases in primary education, expect increased interest from students’ other family members, young and old.

Source: iSuppli Corporation

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

24 Comments

  1. isupply are idiots!!
    iPads are not iPhones and their growth rates will not correlate.
    63 million units is about 25% the whole global PC market. It’s definitely not going to happen by 2012!! Gosh these people are more moody (up and down) than a stimming chick! Remember their April forecast? From one extreem to the other.

  2. isupply are idiots!!
    iPads are not iPhones and their growth rates will not correlate.
    63 million units is about 25% the whole global PC market. It’s definitely not going to happen by 2012!! Gosh these people are more moody (up and down) than a stimming chick! Remember their April forecast? From one extreem to the other.

  3. As an iPad user, I am finding that reading newspapers, such as the nytimes, is extremely convenient and as the site does not support Flash, but HTML5, it is fantastic to be able to preview movies on a newspaper. I find the Safari interface on the iPad is in some ways preferable to the interface on the Mac, and it’s certainly lighter to hold and the battery lasts much longer. I cannot understand how Apple could not sell as many iPads as it can produce, and it looks as if the pad will be in short supply with demand on a continuing upward curve for the next few years.

  4. As an iPad user, I am finding that reading newspapers, such as the nytimes, is extremely convenient and as the site does not support Flash, but HTML5, it is fantastic to be able to preview movies on a newspaper. I find the Safari interface on the iPad is in some ways preferable to the interface on the Mac, and it’s certainly lighter to hold and the battery lasts much longer. I cannot understand how Apple could not sell as many iPads as it can produce, and it looks as if the pad will be in short supply with demand on a continuing upward curve for the next few years.

  5. We’re now forecasting iPad sales of two million units in fiscal 2010 and six million in 2011. Our forecast assumes that over half of iPad sales come at the expense of the iPod touch.” Needham analysts said they revised their call “after watching a replay of Apple’s iPad introduction and reassessing the device’s potential.” Previously Needham analysts said Apple could sell four million units in the year after the iPad’s April launch.

    link: http://blogs.wsj.com/marketbeat/2010/02/03/apple-ipad-analyst-tones-down-excitement-over-device/

  6. We’re now forecasting iPad sales of two million units in fiscal 2010 and six million in 2011. Our forecast assumes that over half of iPad sales come at the expense of the iPod touch.” Needham analysts said they revised their call “after watching a replay of Apple’s iPad introduction and reassessing the device’s potential.” Previously Needham analysts said Apple could sell four million units in the year after the iPad’s April launch.

    link: http://blogs.wsj.com/marketbeat/2010/02/03/apple-ipad-analyst-tones-down-excitement-over-device/

  7. I’m a terrific iPad fan, but I think people are going a bit overboard about its sales demand. Our local Best Buy has lots of stock, and our Target had 15 sitting on a locked shelf when I visited this week.

    So far, iPad is selling about 1.4 million per month by Apple’s own numbers. I’m also sure the iPad will be a big seller this holiday season, but I don’t see the demand growing to 3 million a month throughout 2011. That places it in the iPhone sales arena, a device people can carry everywhere. I only take my iPad out of the house on trips.

    Perhaps when the economy improves enough for everyday people to afford to add another convenience device to their homes, but it certainly doesn’t replace my Macs. It’s an additional device for me, not a replacement item.

    I suppose volume demand could increase if businesses take to it, but most businesses hate Apple. If they want a tablet, they’ll wait for a competitor.

  8. I’m a terrific iPad fan, but I think people are going a bit overboard about its sales demand. Our local Best Buy has lots of stock, and our Target had 15 sitting on a locked shelf when I visited this week.

    So far, iPad is selling about 1.4 million per month by Apple’s own numbers. I’m also sure the iPad will be a big seller this holiday season, but I don’t see the demand growing to 3 million a month throughout 2011. That places it in the iPhone sales arena, a device people can carry everywhere. I only take my iPad out of the house on trips.

    Perhaps when the economy improves enough for everyday people to afford to add another convenience device to their homes, but it certainly doesn’t replace my Macs. It’s an additional device for me, not a replacement item.

    I suppose volume demand could increase if businesses take to it, but most businesses hate Apple. If they want a tablet, they’ll wait for a competitor.

  9. iPad will sell well but c’mon..63.7 million in 2012, let’s not get too carried away with this, it will give ammunition to the enemy when unrealistic expectations are not met.

    Lots and lots of iPad’s in Berlin just waiting for a buyer..no empty shelfs here..

  10. iPad will sell well but c’mon..63.7 million in 2012, let’s not get too carried away with this, it will give ammunition to the enemy when unrealistic expectations are not met.

    Lots and lots of iPad’s in Berlin just waiting for a buyer..no empty shelfs here..

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