• iPad 2 Sales Sluggish after Brisk Start

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    From Alan F. at Phone Arena:

    Perhaps the fact that the new Apple iPad wasn't sold out in brick and mortar stores on launch day was a clue. Even the lack of long lines that had become a hallmark of Apple launch days should have been seen as a sign that something was different this time. Sure, Apple said it sold a record 3 million units during the launch weekend, and pre-order inventory was sold out, but this third iteration of Apple's tablet doesn't seem to have the legs that the Cupertino based tech titan's mobile devices usually sport.

    According to a report from Want China Times, Foxconn employees are reporting a major slowdown in the production of the new iPad. One employee, who works on the tablet'sassembly line in Shenzhen, noted that in February workers received overtime as production of the iPad moved into high gear with 150 to 180 units assembled per hour. In March, the Foxconn employee said that things slowed down quickly and sometimes workers wouldn't even get in 5 days of work during a week. He claims to have had 10 days off last month himself due to a slowdown in sales of the device. This lack of sales also led to the shutdown of 3 of the 20 assembly lines dedicated to the tablet. Those lines are now producing a new product entirely.

    The slowdown in Apple iPad sales has also affected "scalpers" in Hong Kong, according to the Chinesepaper. Instead of the 30% margins they usually get from hawking Apple devices, the word is that they arefeeling "overstocked" and are unable to secure those juicy profits like they have in the past.

    Are we in the midst of a seminal change in Apple's fortunes, or is this merely a Foxconn employee blowing off steam? Either way, we won't know for sure just how well or how poorly the new Apple iPad is selling until Apple's next quarterly report.
    Comments 2 Comments
    1. dushdavj's Avatar
      I think you mean the New Apple IPad sales are sluggish, not the IPad 2. I wonder at the logic behind the article though, Apple sold 3 million IPads during the launch weekend which is more than most the other manufactures have sold in total. This is not about bad sales it is more about what the analysts expect. You all know that I am not particularly an Apple fan, and while I have an old IPod and my wife has an IPad2, I could not see any reason for her to upgrade to the new IPad. A lot of people however did see the need to buy a new IPad (3 million of them). So this may be more the case of the market place being saturated along with a poor economy rather than people not wanting or liking Apples new product, after all not everyone has the money to lay out on new gadgets every year, the youth who I am sure would love to have the latest item may be restricted by the parents saying no, not at the moment because their jobs are not as stable as they would like, or their house needs a new roof, or the gas prices are so high they are reducing the amount of extra cash available. Everything these days is about instant gratification, you write an article for the press and press a button it is published, you want to buy shares you go online press a button and its done, you read the article, worry you will lose money sell your shares instantly and enough people do the same thing the stock drops, no need to phone your broker, discuss the options and then say sell, a process which can take a couple of days, giving you time to think. Then add to that reporters do not go to the countries they are reporting on, instead relying on people's Ireports (as CNN coined it) or reading Associated Press, so if one report is wrong or inaccurate it percolates through multiple news agencies. What should be remember is that at the moment the IPad still dominates the market and will do whilst the technical press love it, and developers keep developing Apps for it.
    1. Delfim's Avatar
      I agree entirely with Dave. iPad may have cannibalized iPad 2, and even vice-versa.But ultimately, the market maybe a bit saturated and there are other priorities. At least I hope that's the way people should think. The economy dictates our choices and causes restraints. The press on the other hand, are forever seeking new news, unrestrained...
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