Apple slows iPad 2 production, is prepping for iPad 3

A write up in Digitimes claims that Apple has asked its manufacturing partners Samsung, LG and Chimei Innolux to reduce the shipping of display panels used in the hugely popular iPad 2. This is a move Apple has made in this quarter. Market watchers believe that Apple is finally clearing the decks for the production and distribution of the next generation iPad 3. Shipping of parts for this model started last month itself.

Apple’s business report recently confirmed that 11.12 million units of the iPad 2 were sold in the third quarter of 2011. Manufacturers of the parts used in the device are reported to have produced enough components to build 15-16 million iPads in the same time frame. There are then already 5-6 million iPad 2 units ready for sale in this quarter. It is due to this surplus that Apple has asked manufacturers to slow down panel shipments.

Apple should have no problem retailing its iPad 2 stocks in the final quarter of the year though. With the holiday season coming up, the company is sure to see a rise in sales of its hugely successful product line.

If there is a surplus left over, it will be interesting to see how the manufacturing firms handle the supplies. Probably Apple will do with the iPad what it does with the iPhone. Maybe it will start selling the iPad 2 surplus at drastically reduced prices when the iPad 3 hits global markets. And that is sure to make 2012 a very happy year for lovers of all things Apple.