AI: Apple ordering 65 million iPad screens for 2011

[JMS]

http://www.appleinsider.com/articles/10/12/29/report_apple_ordering_65_million_ipad_screens_for_2011.html

Report: Apple ordering 65 million iPad screens for 2011

By Daniel Eran Dilger

Published: 01:00 AM EST

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While most market estimates figure Apple will sell 45-48 million iPads next year, the company has reportedly placed orders with suppliers for 65 million 9.7 inch iPad displays.

According to a report by DigiTimes, Apple is believed to have placed orders for an estimated 35 million iPad displays from LG and another 30 million split between Samsung and Chimei Innolux.

The report notes that the volume of orders Apple is said to have placed with its suppliers indicates that the company "is very optimistic about the tablet PC market in 2011, and it may also mean that Apple is overbooking panel capacity." DigiTimes research has delivered a spotty record.

Apple eats up tablet screen supply

By the end of 2010, Apple is expected to have purchased 16.75 million screens for iPads, the report stated, all of which come from Taiwan's component manufacturers. In November alone, LG produced 1.5 million screens for Apple, while Samsung delivered another 1.2 million.

Through the end of the September quarter, Apple has reported selling 7.46 million iPads. That indicates a balance of nearly 9.2 million screens, minus the number Apple has actually sold in the winter quarter of 2010. If the company were actually running into overbooked panel capacity, the problem should already be evident.

Instead, Apple is now said to be bringing on Chimei Innolux as a new supplier of iPad displays in addition to LG and Samsung. Analysts' expectations for iPad sales in 2011 may not take into consideration everything the company is doing to sell its new tablet, including efforts to push iPad into the enterprise.

iPad screen size difficult for competitors to match

Apple's decision to offer iPad exclusively in the 9.7 inch screen size will likely lower component pricing in a way that only benefits Apple, while competitors continue to design and build 5 and 7 inch screens that don't benefit from the massive economy of scale Apple's iPad high volume sales are creating.

In October, Apple's chief executive Steve Jobs said "our potential competitors [in tablets] are having a tough time coming close to iPad's pricing. iPad incorporates everything we've learned about building high value products. We create our own A4 chip, software, battery chemistry, enclosure, everything. This results in an incredible product at a great price. The proof will be in the pricing of our competitors' products, which will offer less for more."

Jobs suggested that iPad competitors were using smaller screens because they couldn't afford to use larger screens, and were therefore ignoring the drawbacks related with trying to shoehorn a tablet interface into a 7 inch screen less than half the size of the iPad's.

"We think the 7 inch tablets will be dead on arrival, and manufacturers will realize they're too small and abandon them next year. They'll then increase the size, abandoning the customers and developers who bought into the smaller format," Jobs predicted.

iPad eats up tablet market, netbooks, PCs

Apple currently faces no credible competitors in the tablet market, particularly in corporate circles. Next year however, Apple is expected to face emerging competition from a new group of tablets running Android 3.0; HP's new PalmPad; RIM's PlayBook and a second run of Microsoft's Windows 7 tablets.

The iPad hasn't just taken over the tablet market; it has also killed growth among netbooks and, according to Morgen Stanley, has already eaten up 25 percent of PC notebook sales this year since it went on sale in April. In September, the firm revised its projected sales from 37 to 60 million tablets next year, saying the Dell Streak and Samsung Tab would also contribute to the trend toward tablets and away from conventional PCs

[Kosher Ham]

I have zero need for a tablet PC.

I wish them luck and applaud their saavy business tactics.

I will be astonished if they sell 30M iPads next year however. The markets' estimates for nearly 45M+ seem extremely unlikely to me without a drastic price drop to compete with the $300 competition. Then again what do I know, I thought Google was a good investment.

[mardi gras skin]

Under the "never buy a first gen mac product" law of consumerism, I've been waiting for the IPad 2 for a while now. We'll grab up one of the 60 million they hope to sell next year.

[JMS]

I will be astonished if they sell 30M iPads next year however. The markets' estimates for nearly 45M+ seem extremely unlikely to me without a drastic price drop to compete with the $300 competition. Then again what do I know, I thought Google was a good investment.

Evidently the 45m number takes into account the competition.

In general though I agree with you. That's a lot of ipads. But what I find exciting about this is that it must mean the ipad is slated for some sort of yet unknown utility. A new killer app, or a hardware upgrade; that's the only way I can see them selling 60 million of the things....

Personally I love my ipad. Use it all the time rather than my computer to search the web, email, reading books or flying my new Parrot AR Drone to patrol my property.

What I'm really looking forward too is Apples new holographic displays.

http://www.t3.com/news/apple-granted-patent-for-holographic-display?=52131

Apple granted patent for holographic display

The rumours are now abound that we could be seeing a 3D iPhone in the future along with 3D iPads, Macs or even Apple entering the 3DTV business market.

Apparently, the patent was applied for in 2006 which has just been granted, and if developed, would allow Apple to bring 3D technology without the need for glasses to the world, bringing holographic images to the viewers with them using just their naked eyes.

The patent is looking to develop such a technology that would enable different viewers watching completely different things on the same screen to have a 3D experience. Stuff of the future indeed.

While we do have 3D technology in the market at the moment, they do require glasses to get the 3D effect.

Currently, this is only a patent, so don't hold your breath for 3D Apple products next year. Although we certainly don't mind hoping.

[Elessar78]

Under the "never buy a first gen mac product" law of consumerism, I've been waiting for the IPad 2 for a while now. We'll grab up one of the 60 million they hope to sell next year.

I agree with this mind set. I rarely ever buy first gen stuff—I think it's a sucker's bet... there are always too many bugs to work out and you're paying a premium price for something that will plummet.

[JMS]

I agree with this mind set. I rarely ever buy first gen stuff—I think it's a sucker's bet... there are always too many bugs to work out and you're paying a premium price for something that will plummet.

That's because you are used to buying Microsoft products which suck for the first two generations on purpose.

Apples actually very good about putting out good products on day one. Apples actually very good on quality control in general. Excellent for a technology company. They have an entirely different mind set than Microsoft has pioneered.

Microsoft who is never first with anything, always stresses time to market in their sales. Apple which is always making their own market, stresses quality from day one...

I will grant you that with any technology if you don't absolutely have a need for it day one; you are better off waiting; because 12 months that same product will be cheaper and twice as fast. But that's not a rule for generation 1 products; that's a rule for all technology.

[Kosher Ham]

I agree with this mind set. I rarely ever buy first gen stuff—I think it's a sucker's bet... there are always too many bugs to work out and you're paying a premium price for something that will plummet.

Perfect example is Blu-Ray players. Now around the throw away price point.

JMS, They have been working on the holographic tech for a while. That is one of the main reasons I refused to buy a blu-ray. I posted about it a few years back.

[Elessar78]

That's because you are used to buying Microsoft products which suck for the first two generations on purpose.

Apples actually very good about putting out good products on day one. Apples actually very good on quality control in general. Excellent for a technology company. They have an entirely different mind set than Microsoft has pioneered.

Microsoft who is never first with anything, always stresses time to market in their sales. Apple which is always making their own market, stresses quality from day one...

I will grant you that with any technology if you don't absolutely have a need for it day one; you are better off waiting; because 12 months that same product will be cheaper and twice as fast. But that's not a rule for generation 1 products; that's a rule for all technology.

Nah, I'm actually Mac-Based. This is just a generality not just with electronics. I have many issues with my 2003 Honda Accord for example—the first year after the redesign. Supposedly a reliable car but so many minor electrical problems have surfaced over the life of it. But even with iPods, PS3s... the 2G seems to, like you said, to have better features. Plus I use the feedback from early adapters to see if it fits my lifestyle, pros and cons, etc

[mardi gras skin]

I've been using Macs for 10 years now. Invariably, they come out with something innovative with their first gen. stuff and that attracts a lot of buyers. Those buyers then complain about a dozen small things they wish their Mac product had and competing companies push some functionality that makes they say will make their products better than the Mac. Apple gathers all the feedback and refines the second generation product.

So I'm not concerned with bugs, I just like the feel of the completed, mature product I get with their second generation stuff. Regarding the iPad 2, I'm looking forward to the camera/facetime functionality, better screen quality, less weight, smudge resistant screen, and (hopefully) usb connectability.

I have many issues with my 2003 Honda Accord for example

Yeah, the bug issue matters to me much more in cars. I never buy a car the first year it comes out (love my 2004 accord) but I've not seen the same issue with macs.

[LD0506]

No matter how good your quality control, the real world test always finds issues with anything.

[JMS]

Perfect example is Blu-Ray players. Now around the throw away price point.

JMS, They have been working on the holographic tech for a while. That is one of the main reasons I refused to buy a blu-ray. I posted about it a few years back.

Yeah but apple just got a patent for it. That looks way cool. evidently it projects images right onto your iris. I would love to play a game using that "display".

---------- Post added December-29th-2010 at 09:21 AM ----------

No matter how good your quality control, the real world test always finds issues with anything.

Yeah but microsoft took that to the next level. Microsoft's sales strategy was to rush products to market before they were ready in order to lock up that niche; relying on peoples willingness to accept buggy version 1.0 and 2.0 products. Microsoft even implemented beta testing programs where poor saps would download and install their crappy software then report back to Microsoft on the errors. Only microsofts QA departement alreadyy had inventories of the bugs and didn't run the "beta testing" program nor did they use the results; Microsoft sales departemnt ran it. Sales would send all those SAPS a button or a ball cap and tell them how important they were. It was all about sales and locking up the power geeks to the new release....

Apple, from my limited experience with them; doesn't seem to play those games.

[matty dread]

So much for those that thought the iPad would be a flop eh?

[zoony]

I'm seeing iPads more and more in airports and on planes. Often I'll ask the person using it if they like it- I've always got an enthusiastic "yes"

I think it would have some appeal, but I doubt I'll ever get one. I'll stick with my laptop and cellphone combo- they are free

[skinfan2k]

I am planning to buy both a Ipad and macbook pro next year. Hopefully there are some awesome deals out there

[SkinInsite]

I hope they do something about that glossy screen, smaller bezel and maybe make it lighter.

[Zhouse]

I'm seriously considering going the ipad2 route instead of a new laptop. I have a dying VIAO and will probably keep that around but I think an ipad will suffice for what I need to do at home....I also have a ****ty Dell at work (I hate that thing)

[skinfan2k]

i mean if you all do is internet at work than a ipad is perfect...

[MattFancy]

I don't have the need fo an iPad or any tablet. I have a perfectly good laptop that is portable, maybe not as much as the iPad, and a BlackBerry (soon to be Droid). So what do I need the iPad for? What does it do that I can't already do on my laptop or phone? And IMO, I don't see how tablets will replace laptops. Its 100x easier to type on my laptop than the iPad. Can you imagine having to write a paper in college on a iPad? Just not going to happen.

[TheGoodBits]

Can you imagine having to write a paper in college on a iPad? Just not going to happen.

If that's what you're going to use it for, you'll probably want one of these:

[MattFancy]

If that's what you're going to use it for, you'll probably want one of these:

Then why not just get a laptop if you have to lug around a keyboard and an iPad?

[zoony]

what's the difference between an iPad and a really big cell phone?

[MattFancy]

what's the difference between an iPad and a really big cell phone?

Its basically a bigger version of the iPhone as far as I'm concerned. And the iPad can't make phone calls.

[HOF44]

what's the difference between an iPad and a really big cell phone?

Wish there was a place you could rent one and try it a couple weeks. I have one a love it. It just does what I need it to do in a size that's not inconvenient and the battery life is pretty much a whole day.

[Zhouse]

definitely a personal choice but I'm starting to believe an ipad can replace a laptop. Even in rare instances i have to write a paper..

voila!

Outside of work, I use my laptop to browse the net, view/orgnize pictures, watch movies etc. An ipad is perfect for that.

[HOF44]

I've also heard that Apple was taken aback by the large number of corporate(fortune 500) bulk orders it has received. Seems the big firms are writing custom apps and handing the units out to employees.