Sharp cuts iPad screen production: report
Summary: A cut in iPad display production seems to corroborate earlier reports that demand for Apple's iPhone and iPad devices is finally waning.
Now at consumers have a choice between the full-sized iPad and the petite iPad mini, a report claims that electronics manufacturer Sharp has effectively halted the manufacture of its 9.7-inch screens in order to concentrate on producing the smalller 7.9-inch displays.
Sources speaking to Reuters claim that production of the 9.7-inch displays at the Kameyama plant in central Japan has been cut back to what is being described as "minimal level to keep the line running this month," following a gradual slowdown that started at the end of 2012. The shift, it is suggested, comes as a result of Apple manages its inventory, but it is unclear if this is a seasonal shift or an overall decline in demand.
It is important to note that Sharp isn't the only supplier Apple uses for displays. LG Electronics and Samsung also supply panels to Apple. While neither company would comment officially on order levels, a source at Samsung told Reuters that there hadn't been any significant change in order levels.
This report comes close on the heels of another suggesting that Apple had slashed component orders for the iPhone by "roughly half" due to falling demand. Hints that Apple's iPhone and iPad juggernaut could be hitting a speed bump pushed the price of Apple shares below $500 this week, the first time the stock has been at this level for almost a year.
A suggestion that demand for the iPad could also be tailing off could spook investors even further.
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Talkback
Worst of possible outcomes
I agree
Sure
Now regarding the above article, I'm confused. I thought the rumors earlier this week were about declining iPhone 5 demand, not iPhones and iPads. I could be mistaken.
Plus, we have three conflicting hypotheses. Demand is down, meaning negative sales growth. Sharp could be producing Mini screens and re-allocating production lines to that product (which kind of suggests that iPad demand is on track with Apple's production expansions and the Mini is taking off). This is inventory control, which also could mean a slowdown in retail sales. Or not. It could also mean that Calendar 2nd Quarter, without benefit of Christmas in one part of the world and the Lunar New Year in another, is a lower quarter that its two predecessors, but year over year growth is still occurring.
We also know that Sharp is in financial troubles, so that makes the tea leaf reading even more complicated. It was telling that Apple orders with Samsung were not changing.
What about rumors that Apple is going to a six-month product cycle? If true, that would mean the next announcements are in March or April. Lines could be shut down for prepping the new versions and the rumor is a bit of misdirection.
Mini Sales
I'm not an Apple fanboi, as I have a Nexus 7, and am very pleased with it — especially the ability of Android 4.2.1 to support multiple accounts on one device, which has been implemented very cleanly.
Re: but it's been a runaway success by almost any definition
It will all 'cutting' for Apple from now.
With WP8 firing on all cylinders and BB10 back in business, iPhone will decline. The only thing apple could claim is about the app count, but that is changing as well... WP8 store is growing amazingly fast this year and it has almost reached critical mass.
Android will self destruct because of Google greed/privacy issues and malware problem. Samsung will move away from android eventually.
Now that's funny...
I agree
And Windows 8 will sell less than others previous I suspect, but it will be huge.... like it will be Apple and android.
I agree Apple is reaching the limits, and it's amazing, knowing it's just one company, a closed platform and they don't even offer many variety - so kudos to them even if they stop at 15 to 20% market share.
I was expecting that Apple was not able to sell a lot more in the last holiday season from 2012, but it seems I was wrong.... or maybe just a little bit ahead of time... again kudos to them.
I really don't want to offend Owlll1net, but I've noticed that his/her (I'm almost sure it's a he) are completely void of reasoning and i guess most of the times it's just pointless to comment about it.
Allow me a bit of humor - how many cylinders are those of RT? 1 with a clogged intake? :)
correction
You should ask CloggedBottom7. :-)
Why not wait until Apple reports earnings before blowing smoke?
I suppose to some degree Apple deserves the rabid speculation because they are so secretive but come on. The most likely explanation is that demand for the mini has caused Apple to ask Sharp to increase production and they have allocated more resources to this and less to the larger screens (which several other companies also make)
Why read anything more than that into it?
And can't we just wait a few more days until Apple makes their quarterly report and we have some facts?
I predict Apple will say they sold millions and millions of their shiny toys and made a gigantic profit. This may or may not satisfy their fickle shareholders but for certain will not stop the smoke blowers.
Geeez.
You seem to forget that this is in fact the ZDNet forum
Some participants, however, have rational and objective thoughts and are not just "defending their hive" all the time.
Re: Why not wait until Apple reports earnings before blowing smoke?
not quite
True journalism is dead
This passes for journalism now, cutting and pasting previously written words without adding any insight or thought provoking words of your own.
Just like the 'iHone 5 sales have tanked' story first posted on Reuters, which reads like a Samsung advertisement, we all have to realize that technology companies have billions at stake; PR firms are paid millions to spread FUD. Stockbrockers will do it to make a good stock sink so they can load up on it then turn a profit.
We have no idea why orders for one size screen went down, could it be that Apple...
-is switching to a different sized screen?
-a different manufacturer?
-was there a problem with yields that has been fixed?
When Apple announces their report on the 23rd we'll have a very good idea where Apple stands.
A little history: in the early '90's, it was predicted by many pundits that Apple was going out of business, being purchased by Sun, etc. , and no matter what happened; Jobs coming back, intro of the iMac, iPod, you still had people praying for their demise. 20 years later, the posters on these boards, because of their hatred for Apple and their love of Microsoft (I know, it makes no sense, MS is the convicted monopolist with the lowest morals and ethics of any US company; as proven by their own emails and testimony), they jump on any report, fake or not, that they think proves their 20 year old prayers will be fulfilled.
Apples not going anywhere in the short term, sorry naysayers.
All companies will die someday, so if Apple goes down 30 years from now, the naysayers will say "Told you!"
My reply
Microsoft is not going anywhere in the short term, sorry naysayers.
All companies will die someday, so if Microsoft goes down 30 years from now, the naysayers will say "Told you!"
"True journalism is dead "
I don't quite get the trolls
Anyway, I certainly agree that Microsoft is the biggest bully in the playground. I HATE that they feel compelled to keep moving the commands around randomly with each new version of their software. Other than that complaint I've found mst of their software to work fairly decently, albeit with a few quirks and other dumb DNA
Inevitable decline
Sharp cuts iPad screen production: report