There are no iPad cuts; some production has moved to Brazil

“JP Morgan’s Gokul Hariharan, who covers contract manufacturer Hon Hai Precision, writes that the assembler of the iPad appears to be cutting production of the iPad for Q4, citing multiple sources from the electronics supply chain,” Tiernan Ray reports for Barron’s. “Likewise, Brian Blair of Wedge Partners offered cautious comments this morning. ‘We understand Apple has recently cut production of the iPad by 15-20% for the December quarter… This would take our iPad unit estimate from 16 million units down to approximately 13 million units for December,’ writes Blair.”

Ray reports, “Piper Jaffray’s Gene Munster argues there are no cuts, and that a shift by Apple to other manufacturers could have something to do with the rumors… ‘Apple is currently transitioning to Brazilian iPad manufacturing, which may be impacting Asian manufacturing numbers.'”

“News reports in the last week or so said that Apple would shift some production to Brazil, as related by PC Magazine’s Leslie Horn two weeks back,” Ray reports. “And Susquehanna’s semiconductor analyst Chris Caso writes that it’s not true, and that the Apple supply chain remains ‘robust’ compared to order cuts elsewhere in tech… Caso’s colleague who formally covers Apple, Jeffrey Fidacaro, concurs with Caso’s assessment: no cut to orders.”

Read more in the full article here.

MacDailyNews Take: So much for today’s gift horse.

Related articles:
Foxconn begins Apple iPad assembly in Brazil – September 14, 2011
Brazil’s president slashes taxes to lure iPad production jobs – May 18, 2011
Foxconn to assemble Apple iPhones and iPads in Brazil; Mac production a future possibility – May 3, 2011

19 Comments

  1. Bacmook, you are correct, sir. The quarter is almost over and there needed to be a sale before the runup, so somebody had to come up with something. Spin the wheel of negative Apple rumors, where it stops, it don’t matter.

    1. Your post SOUNDS reasonable, usworker . . . until you look into the FACTS of the matter. Twenty years ago Apple purchased an assembly plant just south of Colorado Springs, Colorado, at which the company put together notebook computers. Five years later (1996) they CLOSED and SOLD that plant because the quality of workmanship from that facility was absolutely ABOMINABLE. Management did little more than play golf all day, and the return/reject rate on the PowerBooks produced there by local workers was atrocious.

      The truth is that NO CHILD IN AMERICA is being raised by parents or educated in the public school system today to work on an assembly line. Period. Every child is going to be a rocket scientist, an entrepreneur, a surgeon, or the like. Work in a factory doing the same thing day after day, with no creative input whatsoever? HELL NO! IT AIN’T GONNA HAPPEN!

      That’s the kind of work the “Third World” does, not OUR children, right? Raw, hardcore manufacturing is dead in America. End of argument.

      1. You’re wrong about “NO CHILD IN AMERICA is being raised by parents or educated in the public school system today to work on an assembly line”. From that statement it is clear you dont know what the truth is.

        1. OK – I’m ready. And don’t let me down. This is just the kind of thing I get out of bed for.

          G’head – Splain it to ’em! G’head! The big truth tellin’ wieners.

      2. you are right, numerous articles say the same:

        example:

        reuters Jul 2011
        “U.S. manufacturers cannot find skilled workers despite high unemployment,…
        … BTE Technologies President Chuck Wetherington also told lawmakers his company had been unable to fill some positions. My job is getting a bit more technical. There are some micro and macroeconomic issues. Occasionally we have to recruit from abroad. There is a mismatch between skills and workers,” said Wetherington.”.

    2. If Apple was to produce its products in the US, the workers who would be willing to do the work would be new immigrants and not single lazy WASP US citizen would be willing to do the work.

    1. in the last recession most of the u.S auto companies almost went broke (would have except for multi billion dollar bailouts from U.S Govt.) due to the fact the workers are very highly paid — pension and fat benefits etc which are not sustainable and are being phased out. New tech companies with much lower salaries and no pensions are finding it hard to get workers.

      ALSO — U.S manufacturers cannot grow big just selling to U.S. If you manufacture a P.C in U.S and it costs $3000, how will they sell it in Europe and compete with Asus selling at $500?

      when Apple was selling U.S built Macs for $5000 -10000 and Dell was selling asian made PCs, everybody was attacking Apple for being ‘overpriced’ and Michael dell said Apple should shut down and give the shareholders their money back and Bill Gates was getting all kinds of public awards (even as Windows was filling Sonys, samsungs, Acers etc ) … (remember those times?)

      right now Apple is one of the few tech companies which still has all U.S teleophone support call centers for U.S customers, most of the rest have given up and are using overseas support…

      Funny thing too, Google is now considered by many as the SAINT rescuing people from evil Apple but Google is giving away Android for FREE to asian manufacturers to compete with American companies like Palm (now gone), HP (selling off its PC division), Apple. Even motorola which uses android is being crushed by asian android OEMs like HTC and Samsung.

      Apple is roundly condemened by unions and politicians for not manufacturing in U.S but Google is lauded as a hero even as it arms foreign manufacturers with the last stand of u.s economy: intellectual (e.g software) advantage. Worse Google makes almost no money from android (apple makes about 50 times on iOS and mobile) so pays little taxes.

    1. Don’t they live in subsidised company quarters? Don’t they have free medical? Aren’t the company towns pretty nicely equipped?
      Can’t they buy a car for $1.98?
      Not that I would want to work the long hours they often choose to work.
      Just don’t think that it’s always slave labour

  2. I’m sure the vocal American patriots that want Apple to manufacture in the US will be willing to pay the extra $300 per iPhone I additional union labor cost…

    Sure!

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