Apple Inc. (AAPL) Moving iPad 2 Manufacturing to New Brazilian Plant?
AAPL is expected to reduce its production in the Foxconn plant by up to 25%, confirmed by JP Morgan Chase analyst Mark Moskowitz.
Several supply-chain vendors indicated in the past two weeks that Apple lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan’s electronic manufacturing services team in Hong Kong said they have ever seen. The report didn’t list the affected companies, and Gokul Hariharan, one of the report’s authors, said he couldn’t comment when reached by Bloomberg News today.
Apple Inc. may also use the new Brazilian plant for iPad 3 production, ramping up in time for an early 2012 release. The Cupertino, California-based company has been rumored to release the iPhone 5 this October, which may currently occupy much of the Foxconn production lines. As a result, it is likely that Apple may be moving iPad 2 and iPad 3 production over to a new plant in order to keep up with consumer demand.
JP Morgan Chase analyst also mentioned that Apple is expected to produce between 10.9 and 12 million iPads during the 4th quarter, up from 9.25 million in Q3.