Apple faces supply constraints

Posted by Nick Farrell

While Apple is doing its best to rally the troops, it appears that privately it is admitting that it has a long way to fall yet.

Apple cut its shipments of the iPad mini to between 10-12 million units for the second quarter of 2013.

The source of that rumour is Digitimes. It scores over the older, more pedestrian tech press, in that it is actually on the scene and sometimes gets it right .

In this case the figure is based on shipment information given from multiple sources who provide various components for Apple's iPad mini.

While many had known that the larger and more expensive iPad was dead in the water, this is the first time that the iPad mini has fallen short of its sales targets.

The decrease may be as high as 20 percent a month during April, the sources noted, and may continue to slightly decrease throughout the quarter to bring total shipments of the iPad mini to as low as 10 million units during the quarter.

While Apple fanboys might scream that 10 million units is better than a poke in the eye with a short stick, it is not enough to justify the still inflated share price, or maintain Apple's much touted reality distortion field.

Apple's cut comes as it is adjusting its reserves for the next-generation iPad mini, which is likely to be released in the third quarter.

But Apple is also finding it tough to compete with various 7-inch Android tablets, Digitimes' sources said.

Apple recently slashed shipment estimates for its iPad and iPad mini products in 2013 to 33 million and 55 million, respectively, said the sources.