Welcome To Doom, Apple. No, Seriously.

Rumor: Apple reduces iPad 2 orders by 25%, could drop price

In a report issues to investors this week, JPMorgan Chase & Co. indicated that Apple has cut fourth-quarter iPad orders from its overseas supply chain by 25 percent, according to Bloomberg. Sources in the supply chain said the cut was enacted in the last two weeks, and it is the first such one from Apple they have ever seen.

Boldfaced emphasis added by me.

If this is true, the shit just got serious with a capital-S.

June 1, 2011: Is It #Doom #WASF Yet?

It’s when Apple announces sales actually went down for all of its products for one quarter. And then for a second quarter.

That is when you know we are in Doom We Are So Fucked land.

But a cut in iPad production is very significant. I think even more than the iPhone, the iPad represents Apple now. It’s their post-PC flagship model. And if demand is lessening, that’s just not a good sign at all — for any of us.

21 Comments

Filed under Apple: The Company, Collapse, Pottersville

21 responses to “Welcome To Doom, Apple. No, Seriously.

  1. Of course, Apple is busy ramping up production in Brazil particularly for the Americas where it is prevented from selling at reasonable prices due to tariff rates unless produced there.

    Wouldn’t be the first time an analyst has not done their research properly – especially when it’s JPM.

  2. There is another part to this rumour: that Apple is shifting a part of the iPad production from Asia to Brazil. Therefore Asia sees a reduction of production and South America should see an increase in production.

  3. Arnold Ziffel

    This, in my opinion, is likely FUD. Let’s not jump to unwarranted conclusions.

  4. James Bailey

    What part of a price drop would spell doom? Seems to me that if Apple starts reducing the price of the iPad 2, it spells doom for the iPad wannabe’s, not the iPad.

    Don’t read too much into rumors. It makes you look stupid later on when they turn out to be untrue or misinterpreted.

  5. HammerOfTruth

    Oh noes! Apple will have to start using the 70+ billion in cash it has!!! Quick, lets collect some money to send to them. Poor Apple…..

    Nobody buys iPads anymore……

    http://finance.yahoo.com/news/Many-US-schools-adding-iPads-apf-1245885050.html?x=0&.v=2

    • mikecane

      The report is being refuted by other analysts. Eh. Wait and see what Apple says about sales for this quarter in its future conference call/press release. I’ll point back to this then.

  6. chano

    What a nervous girl you seem to be.

  7. Did everybody forget we are in a recession/depression? Did anyone think Apple could continue making records profits and having record growth each and every quarter? There is still nothing out there like the iPad. Nothing. Maybe people are waiting for the iPhone 5 instead to spend their money towards. Either way, Apple owns the tablet market. But they can’t control how large it could get.

  8. Shock Me

    Could be a shift in production location.
    Could be the early introduction of a new model.
    Could be a hedge against an expected decline in purchases.
    Could be a reaction to an actual drop in sales.

    We’ll see.

  9. Pedant

    I am constantly amazed at how short the memory is of 99% of the Internet.

    Apple locked up the iPad market by being 100% on top of its supply chain. They know to within an inch how many machines they need and they buy/sell accordingly.

    Interpreting Apple slowing down of production of one product as being “oMg, the end is nigh” just prior to expected new product announcements is so mind-numbingly stupid it boggles the mind.

  10. AdamC

    All analysts have vested interest and the same with JPM and as for Apple it is now sell on rumors and buy on news.

    i

  11. Vino

    If obscenity laced headlines is what makes your blog work, you are probably good at finding readers who enjoy that sort of thing. My mistake in clicking on a link from Macsurfer. There are many other writers who seem to do quite well without the F-word. Goodbye.

    • mikecane

      Good fucking riddance, asshat.

      • HammerOfTruth

        Or you could have said:

        Fine Fella, Feel Free to bid Farewell, you Flatulent Ferret that Fires Fecal Fragments.

        That would have more F-words in it

      • mikecane

        The hypocrisy of people just gets up my nose. I’m sure that guy has plenty of DVDs in his collection of favorite movies that have plenty of words he objects to. But because it’s all “make-believe,” the words are imaginary too.

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