iPad 2 sales forecasts torn up as Apple struggles to meet epic demand

“Huge demand for Apple’s iPad 2 has led one long-time Apple watcher, Needham & Co. analyst, Charlie Wolf, to increase his projected 2011 sales figures by 50%,” Kenny Hemphill reports for MacUser. Wolf has “revised his forecast from 20 million to 30 million units for 2011 and from 30 million to 40 million units for 2012.”

“In the US, where the iPad 2 has been on sale since 11 March, queues are still forming outside retailers when new shipments arrive,” Hemphill reports.

“In the UK, Apple retail stores are advising prospective purchasers to order online to ensure they don’t miss out. Apple’s online store, however, is currently quoting a 3-4 week dispatch estimate,” Hemphill reports. “The Guardian reported on Monday, that the biggest non-Apple retailer carrying the iPad 2, Argos, had run out of stock completely and didn’t expect to get more until 25 April.”

Read more in the full article here.


      1. I think the 3g version is the hottest. Was in Best Buy and quite a few people came in asking for the 3G while but they had only WiFi versions…played with a xoom and it was terrible in UI experience. Nothing compared to the iPad. Fandroids must be in a heightened state of cognitive dissonance fer shure!

    1. So I ordered my 16GB WHITE Ipad 2 March 14, and it originally said April 11 for it to ship, I checked my order status this morning and it ships April 4th. I was in shock! for those who ordered theres on or around March 14, id check your order status. looks like apple is finally catching up with demand!

    2. Same here and my Partner too …..

      The last two we ordered have expect date around 4/25 …..

      So far we have six units ordered and will order another two ….. Last year we ordered four …..

    3. Same for the first four we ordered ….. Next two ships around the 24th ….

      We still want two more but are waiting for credit card and fiscal year to change April 1st …..

      Last year we purchased four and this year it will be eight for our little company ….. We are thinking about providing foreman’s with as well and will do field test with one of our original units …. Balance of original iPad units are getting written off and passed down to our kids / grandkids ….

      1. Don’t count on $350 being the new low. Analysts are going to continue to drive down this stock for various reasons. They’re smart enough to put a negative spin on anything positive that Apple does and investors are stupid enough to believe it.

    1. It’s not as simple as building a mfring plant. You also have to have the components for assembly. We don’t know what the bottleneck is to meet demand. Perhaps, Apple’s order runrate was just too low.

      1. Are you kidding me? Apple’s problem is that they didn’t create a Magic Wand or a few of Star Trek’s Replicator Devices that can just create thousands of iPad 2s out of thin air in a matter of seconds. Bottlenecks? Pffft. No good company should ever have a bottleneck even in the event of a natural disaster. You just get components from somewhere, anywhere so 100% production goes on unceasingly. Even component supply second sources should have third sources as a backup. Apple and Foxconn really need to remove humans from the assembly process. Meatbags are just too unreliable because they get tired and need to rest all the time.

        The analysts say that Apple is doing everything wrong as far as logistics is concerned and that’s why they’re forced to downgrade Apple stock. Apple screwed up miserably. No iPad 2s to be found and humans are suffering from waiting in the freezing cold or blazing heat.

        Does anyone see any other tablet vendors making consumers wait on hours-long lines? No? I rest my case.

  1. Does anyone know if Microsoft was able to get theirs so that they can be innovative and get started copying it? Every time they hold it up in the mirror and turn it up side down, it flips over on them.

    I did not see any Dancing Monkeys on line yet. Maybe Steve Ballmer ordered his on line already.

      1. I ordered mine on March 11 around 11:00 am. Original ship date was 1 April with delivery on 6 April.
        Got an email from Apple and it shipped on 29 march with a delivery date of 1 April.
        So there is hope for you guys of an earlier ship date!

  2. But… but… but, the analysts say tablet market is getting crowded with competitors and it is only a matter of time before we witness a repeat of what happened with the iPhone (whatever they mean by that). And didn’t that guy, Guano, prove that Apple’s sales are slowing because the rate of growth (not absolute sales, but the rate at which the company was continuing to expand) for a manufacturer (for which Apple is about a 20% customer) had declined?

    Yeah, I figured it was time to dump my Apple stock.

  3. My guess is that Apple now and in the future will not pre build all the different models, for the simple fact that even though demand is huge, as a business, it might not be wise to build a massive inventory of all 9 models. You order, they build. I doubt if Apple is worried that people will go to the competition, especially in the tablet market, there’d isn’t really any. It would be a dumb business decision to build so much and not have people buy them and be stuck with excessive inventory. Just sayin..

  4. Don’t forget what Gene said….

    Apple’s iPad 2 will be a hot seller, but don’t expect to see long lines like last year, says Piper Jaffray analyst Gene Munster.
    Unlike last year, when Apple only had ~1,200 distribution channels through Apple stores and Best Buys, this year it will have over 10,000 channels through Target, Walmart, AT&T, and Verizon. As a result of this diversity, Munster believes lines will be small.


  5. I don’t understand why people are not ordering it online for delivery.

    I was at an Apple Store yesterday, and overheard an employee explaining the “drill.” Show up at the store before 7am and form a line. The Apple Store opens the shipping box with iPads they received that day, and take inventory of available models. At 7am, they give out “tickets” for the available models to the people in line, until they run out. The customers with tickets return at 9am (when the store opens) to buy the specified model.

    Show up BEFORE 7am and wait in line, with the distinct possibility that the desired model will not be available? Just order it online a wait a few weeks. Maybe you can even find a vendor that does not need to charge you sales tax.

  6. Apple has failed again. They haven’t figured out how to supply 20 million iPad 2s to consumers who want one in the first couple of weeks. I’m sure this careless logistics snafu has to be one of the reasons that Apple shares have been a little less than flat ever since the iPad 2 was announced for sale. Apparently, no consumer should ever have to wait for a product once it goes on sale no matter how many units are required. This is something that I never knew when I studied the theories behind production.

    I’ve finally concluded that a company having an exceedingly popular product is actually a curse instead of a boon. What matters more is the consumers that can’t purchase the product than the consumers that have purchased the product. Although Apple had said that Foxconn would only be able to produce about five million iPad 2s a month, if 5.5 million consumers want an iPad 2 a month, then Apple has failed by frustrating those .5 million consumers by leaving them out in the cold.

    At least analysts now have a good reason to start lowering revenue estimates before earnings. Shortages ahead! Look out below!

  7. Mr. Market is probably worried that with problems in Japan, Apple simply cannot build the product. There were rumors of last minute changes which drastically shortened the ramp. Meaning, apple announced the product with a much smaller stock on hand. Those sold out immediately and now apple finds that new production is impossible. Might explain why apple has not announced the “1 millionth iPad2” sold yet. Maybe they had 300k on hand with another 2 or 300 in the pipeline and that is it.

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