Apple Inc. (NASDAQ:AAPL) is expected to reduce the number of its shipments for the iPad Mini during the second quarter of 2013, according to a report from the technology news site DigiTimes, citing unnamed sources in the industry.
According to the report, Apple Inc. (NASDAQ:AAPL) is planning to cuts its iPad Mini shipments to approximately 10 million from 12 million units. The estimate was based on the shipment information obtained from various sources who supplies different components for the production of the iPad Mini.
The sources estimated that Apple Inc. (NASDAQ:AAPL)’s might reduce the volume of its iPad Mini as much as 25 percent in April.
In addition, the sources speculated that Apple Inc. (NASDAQ:AAPL) will reduce the supply for the iPad Mini in anticipation for the launching for the new model of the device in the third quarter this year. Furthermore, they added that the other reason for the shipment cut is the strong competition particularly from 7-inch tablets powered by Google Inc (NASDAQ:GOOG)’s Android operating system.
For 2013, Apple’s total adjusted shipment for the iPad is around 33 million and 55 million for the iPad Mini, according to the sources.
A previous report from the International Data Corporation (IDC) indicated that Apple’s dominance in the tablet market will end and estimated that the company’s market share will decline from 51 to 46 percent this year. The sales of the iPad Mini has been strong since its launch.
In last year’s fourth, the iPad Mini contributed 20.3 percent share of all the devices connected, according to the study released by the IDC. Apple Inc. (NASDAQ:AAPL) CEO Tim Cook previously stated that the iPad Mini is cannibalizing the sales of the iPad.
During the tech giant’s first quarter earnings conference last January, questions were raised regarding reports that Apple Inc. (NASDAQ:AAPL) is cutting is shipments and orders for components. At the time, Cook said that Apple has multiple sources for product components and he questioned the accuracy of shipment rumors.
“Months of rumors about order cuts and so forth, so let me take a moment to comment on these. No comment on any particular rumor,” Cook said.
“I suggest its good to question the accuracy of any kind of rumor about build plans. Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant to our business. The supply chain is very complex and we have multiple sources for things. Yields can vary, supplier performance can vary. There is an inordinate long list of things that can make any single data point not a great proxy for what is going on,” he added.