Thursday, October 4, 2012

The iPad Mini Is 'No Walk In The Park' For Suppliers - Business Insider

The iPad Mini is 4-6 weeks behind its forecasted launch schedule because suppliers are struggling to make it, says Topeka Capital analyst Brian White in a new note this morning:

"iPad Mini" is No Walk in the Park for Suppliers and We Expect 5-7 Million Units. Similar to the iPhone 5, we sensed that suppliers have found the specs around Apple's (AAPL-$671.45: Buy) 7.85-inch "iPad Mini" to be a challenge and yields have been frustrating. In our view, this is the reason the "iPad Mini" is 4-6 weeks behind our original launch expectation that we discussed in June. Despite continued yield challenges, the supply chain feels the much anticipated iPad Mini is on track to reach acceptable volume levels for a launch over the next month. That said, we believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch. A year ago, we coined the term "iPad Mini" and discussed a price point in the $250-$300 range. We continue to believe this price point range is reasonable and we believe Apple can sell 5 million to 7 million "iPad Mini" units in the December quarter. Despite the lower price point, we expect Apple to maintain the iconic aesthetics of the current iPad and blow away what competitors are offering in this smaller form-factor tablet market.

Source: http://www.businessinsider.com/the-ipad-mini-is-no-walk-in-the-park-for-suppliers-2012-10

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