Apple cuts iPad supply chain orders by 25%, say analysts

Apple has cut Q4 iPad orders from its Asian supply-chain partners by 25%, JP Morgan analysts say (via Bloomberg).

Apple Inc. is cutting orders to vendors in the supply chain for its iPad tablet computer, a move that may result in slower sales for companies including Hon Hai Precision Industry Co., JPMorgan Chase & Co. said in a report.

The analysts say “several” of Apple’s supply-chain partners have reported this cut, which has come in the last two weeks. It is the first such cut that JP Morgan analysts have ever seen.

Interestingly, the JP Morgan report also says that the firm’s US-based Apple analyst, Mark Moskowitz, does not plan to cut his forecast of 10.9 million to 12 million iPad shipments in Q3 and Q4.

JPMorgan analysts wrote in the Sept. 25 report. The report said JPMorgan U.S. analyst Mark Moskowitz, who covers Apple, does not expect to lower his projection of 10.9 million to 12 million units of iPad shipments in the third and fourth quarters after the supply chain adjustments.

It’s hard to know how worked up to get about a report like this. Even if it’s dead-on accurate, we don’t know what Apple’s internal orders were versus the market’s expectations.

That said, a 25% cut is a big cut. And it’s hard to see how it could possibly be good news.

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