Parts Shortages Reduce iPad 2 Shipping Forecasts

Shipping times for the iPad 2 are down to 1-2 weeks on the Apple Store online. This may better than 4-6 weeks for consumers, however the extended delays experienced since the iPad 2 was launched have caused analysts to reduce their Apple sales forecasts. IHS iSuppli now expects Apple to deliver 39.7 million units including all iPad models in 2011.

iPad 2 short supply

Their previous estimate was over nine percent higher at 43.7 million units. Other analysts aren't as optimistic. JPMorgan and Merrill Lynch both reduced their annual estimates slightly however the forecasts are much lower, coming in at 27.3 million and 26.4 million units respectively.

Apple reported sales of 4.7 million iPads in the second quarter, less than expected due to short supply and high demand around the world. Although the earthquake in Japan did not cause major problems with Apple's component supplies, there are still issues in the supply chain. Specific problems involve the LCD displays and speakers used in the iPad 2.

Investors are still concerned that component shortages might hit Apple during the current quarter and make it more difficult or expensive for Apple to continue to ramp up iPad production. The company already agreed to higher pricing and made moves to insure that its supplies of vital electronic components wouldn't be disrupted.

Regardless of the lower sales forecasts, Apple posted record second quarter numbers this year, achieving $24.7 billion in revenue for a net profit of almost six billion dollars. Shares of Apple stock (AAPL) are currently trading around $350 per share.

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