According to a new research note by FBR analyst Craig Berger relayed by Business Insider, Apple will be unable to meet the internal goal of 40-45 million iPads produced this year. The analyst called the number “out of reach”, and said low touchscreen supplies, component shortages and production issues at Hon Hai’s Foxconn will limit Apple and affect iPad shipments throughout the second and third calendar quarters of 2011.
For the third quarter, he sees production dropping off to 5.2 million units thanks to component shortages and production problems. He also says the effects of the Japanese earthquake could be felt in Q3. But, Berger says that could change if touchscreen supplies improve.
Ahead of the iPad 2 announcement and release in March, reports suggested the device could be delayed until June due to production issues in Foxconn’s facilities. The alleged delay didn’t happen of course, but it’s no secret Apple struggled to meet demand for the new device as also confirmed by COO Tim Cook at the company’s Q2 2011 earnings call, where he said consumer demand had been “staggering” with the iPad 2 heavily back logged at the end of the quarter. He later went on to call the iPad 2 “the mother of backlogs”, with Apple working as fast as they can to get the device in the hands of consumers. Tim Cook also said the Japan earthquake and tsunami would reduce revenue in Q3 by around $200 million, but assured Apple was on track to avoid production issues and shortages for the next quarters.
Separate reports in the past weeks noted display and speaker production issues affected iPad production in the last quarter. The iPad 2 is available on Apple’s online store, with waiting times of 1-2 weeks in most international stores.