Apple Ramping Up iPad Production

By  |  Friday, September 3, 2010 at 2:29 pm

Industry watchers typically like to use shipping times as a gauge of popularity. Under this logic, the reduction of shipping times for the iPad from several days down to less than 24 hours may lead you to believe that demand may finally be cooling. Not so fast, says Morgan Stanley analyst Katy Huberty.

Huberty is pointing out that the company recently boosted production up to two million devices per month, double its initial manufacturing capacity. Apple is not satisfied either: it plans to ramp this up to three million a month during the crucial holiday shopping season. With a production rate like that, it’s hard to imagine Apple having any problem keeping it on the shelves.

Apple has repeatedly said it has been “surprised” by the heavy demand for the product since it launched in April. About one milion per month have sold, leading several analysts to believe that the Cupertino company could ship as many as 10 million units during 2010 alone.

It’s success is also making it that much harder for new entrants into the sector, given that Apple has a large marketshare and practically all the buzz in the tablet PC sector. Say what you want about Apple, but they certainly have positioned the iPad well to maintain its dominance for at least the near future if not longer.

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