Friday, July 23, 2010

LG indicates iPad supply will be constrained into Q2 next year

Reuters reports this morning that LG cannot keep up with Apple demand for iPad displays.

The fact that they are constrained in the short run is old news that they will not catch up until 2011 is a big deal.

During their earnings Call Apple was asked several times in different ways about the nature of the current pipeline contstraints of both iPad and iPhone 4s. And while they would not say when they will get demand/supply in balance I for one left the call with the impression that there were no particular issues that would prevent a reasonably short term ramp to a much bigger number.

Tim Cook...
Both of these products, the iPad and specifically the iPhone 4, we had backlog at the end of last quarter that we were not able to fill. And currently, we are still selling both of those products as fast as we can make them. So we still are quoting longer lead times than we like and we’re looking around the clock to try to get supply and demand at balance.

Early in the questions Tim Cook mentioned that they targeted a million iPads a month for the launch but have been blown away by demand. Why did no one ask the question... How blown away? 1 million 2 million? So we know they are making more but not likely MANY more than 1mm a month right now and LG is saying they are nog going to be able to meet Apples current demands until Q2 2011. Isn't that when V2 will be out with the magical retina display and front facing face time camera?

Again Tim Cook
because if it turns out that the iPad cannibalizes PCs then I think it's fantastic for us, because there is a lot PCs to cannibalize. It's still a big market.

I took this comment initially as a little snarky but when you take it at face value it is indicative that Tim Cook believes it is at least possible that the iPad becomes a truly transformative device that ultimately (in a much later version) replaces the PC

off topic a little, ok a lot. Why did not a single analyst ask about Apples Cash position? I know we are going to get a crap answer but at least ask. More on this later.

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