Apple seems to be controlling inventory, not reacting to a slow-down in sales
Apple’s AAPL stock price fell sharply last week after some confused reports out of China and Taiwan regarding the company’s communications with its supply chain. The first report was that Apple had cut back orders 10% to 15% on parts for the iPad 2 and the iPhone 4S because, according to Taipei-based DigiTimes, “sales of the iPhone 4S have not been as strong as those concluded in the pre-sales period.”
After a flurry of analyst reports pointing out that iPhone 4S sales were, if anything, stronger that expected, a consensus developed that it was not the iPhone but the iPad that was showing weakness, perhaps because of publicity surrounding the launch of Amazon’s AMZN Kindle Fire.
Now DigiTimes has issued a clarification of sorts. If Apple has cut back on iPad component orders — and several manufacturers of 9.7 inch panels indicate that they have — it’s not because iPad sales have slowed, but because Apple is controlling inventories in advance of the launch of a new iPad.
Citing unnamed “sources,” DigiTimes reports:
Given DigiTimes’ track record, take even this with a grain of salt.