If the 21st century had to have a mascot, it would definitely be Apple. That is why when reports come out that the tech-giant is pulling back, people pay attention.
Update: Apple will be reporting their Q4 financial results during a conference on October 18.
According to a report released by JPMorgan Chase & Co. (NYSE: JPM), Apple Inc. has lowered their iPad orders by a whopping 25% for the fourth quarter of this year. This move comes at a strange time considering the holidays are just around the corner.
The Reasoning Behind the 25% iPad Order Decrease
No matter how you present it, a drop this drastic in order size does not look good. What does Apple know about the future market that no one else does? Cutting orders by this big of a number is virtually unheard of from companies the size of Apple. There are different speculations circling the web, and Apple has yet to confirm any of them including the decrease in iPad orders.
- The main theory and easiest explanation is that Apple now know they will not be able to reach the demand of the sales projected so they are pulling in the reigns.
- Another possibility is the company is trying to account for the iPad 3 coming out soon, and predicts there will be a huge drop in iPad 2 sales as customers attempt to snatch up the latest model. This is the least likely prediction considering Apple is well-aware of their production schedule.
- One of the craziest theories out there proposed by Henry Blodget is that the company requested such high order amounts to block any other tablet company from the resources needed. Now that it’s too late for those companies to produce the mass amounts Apple has, they have pulled back on the orders.
If the third theory is indeed the case, this is quite a nasty move by Apple, knowing that no manufacturer in its right mind would ever cut a partnership with them.
JPMorgan Chase Reveals Apples Move
Why this is any of JPMorgan Chase‘s business is beyond us, but the fact of the matter is the corporation has put forth a valuable piece of information for the public. Even though Apple has not yet confirmed this decrease, JPMorgan Chase has gathered reports of various Asian suppliers saying they have evidence of the large cuts in store for Q4.
So far Apple has shown absolutely no signs of slowing down ever since new CEO Tim Cook took over for Steve Jobs, in fact, the company hit a record breaking high of $422 per share last week.