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by Analyst firm iSuppli said that it was significantly raising its forecasts for sales of Apple's iPad tablet a few hours before Apple was set to announce its results for the third fiscal quarter.
iSuppli said that it was raising its iPad forecast to 12.9 million units in 2010, nearly double its initial forecast of 7.1 million units. The firm also said that it now expects iPad shipments to rise to 36.5 million in 2011 and 50.4 million in 2012.
Apple, meanwhile, could theoretically overtake rival Microsoft in revenue with a strong earnings report later Tuesday afternoon.
Rhoda Alexander, director of monitor research for iSuppli, whimsically compared the iPad to hot gifts of the past.
"The iPad is shaping up to be the 'Tickle Me Elmo' of the 2010 holiday season, with product demand expected to vastly exceed available supply," said Rhoda Alexander, director of monitor research for iSuppli, in a statement. "Apple has hiked its iPad manufacturing goals to suppliers across Asia. As iSuppli stated in its initial forecast, the key to continuing success will be how quickly Apple responds to issues as they arise and whether the company can align suppliers to meet demand needs. Apple's acceleration of its component demand indicates that the company has raised its iPad production target for 2010. Our latest research indicates there is much higher production than previously expected for two key components: LCD panels and NAND flash."
Alexander said that she believes that only production, specifically the defect rates of the touch screens Apple uses, are holding the company back - not demand. And with new suppliers coming on line, Apple can only be helped, she said.
"Production capacity for the iPad's projective capacitive screen is increasing daily with new vendors entering the market, expanding production at existing sites and improvements in yield rates at the established producers," Alexander said.
iSuppli said that it was raising its iPad forecast to 12.9 million units in 2010, nearly double its initial forecast of 7.1 million units. The firm also said that it now expects iPad shipments to rise to 36.5 million in 2011 and 50.4 million in 2012.
Apple, meanwhile, could theoretically overtake rival Microsoft in revenue with a strong earnings report later Tuesday afternoon.
Rhoda Alexander, director of monitor research for iSuppli, whimsically compared the iPad to hot gifts of the past.
"The iPad is shaping up to be the 'Tickle Me Elmo' of the 2010 holiday season, with product demand expected to vastly exceed available supply," said Rhoda Alexander, director of monitor research for iSuppli, in a statement. "Apple has hiked its iPad manufacturing goals to suppliers across Asia. As iSuppli stated in its initial forecast, the key to continuing success will be how quickly Apple responds to issues as they arise and whether the company can align suppliers to meet demand needs. Apple's acceleration of its component demand indicates that the company has raised its iPad production target for 2010. Our latest research indicates there is much higher production than previously expected for two key components: LCD panels and NAND flash."
Alexander said that she believes that only production, specifically the defect rates of the touch screens Apple uses, are holding the company back - not demand. And with new suppliers coming on line, Apple can only be helped, she said.
"Production capacity for the iPad's projective capacitive screen is increasing daily with new vendors entering the market, expanding production at existing sites and improvements in yield rates at the established producers," Alexander said.
