“Analyst Mark Moskowitz of J.P. Morgan Research warned investors early Wednesday that build plans for tablet shipments from Apple’s rivals may be too high, presenting ‘increasing risk of a bubble burst’ in the second half of 2011,” Josh Ong reports for AppleInsider. “‘In our view, the technical and form factor improvements of the iPad 2 stand to make it tougher for the first generation of competitive offerings to play catch-up, meaning actual shipments could fall well short of plan,’ Moskowitz wrote.”
“Using discounted build plan estimates to project tablet shipments for the year, the analyst claims that tablet makers will build approximately 65.1 million tablets in 2011,” Ong reports. “When compared against J.P. Morgan’s estimates of 47.9 million tablets sold this year, companies could find themselves with as much as 51 percent oversupply in a worst case scenario.”
Ong reports, “According to Moskowitz, component suppliers could stand the most to lose from a bubble burst. ‘Based on our research inputs, tablet makers eager to emulate Apple’s meteoric start are trying to secure components with inflated build plans,’ Moskowitz noted. ‘Of note, glass displays, processors, and, to a lesser extent, NAND Flash are the components that could be most at risk.'”
Read more in the full article here.
MacDailyNews Take: Pop!
[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]