Apple’s long-awaited iPad may be even more long-awaited as manufacturing glitches will limit the initial availability of the tablet computer, a Wall Street analyst has warned. Canaccord Adams analyst Peter Misek said in a note to investors that the problems will limit initial availability to 300,000 units and could even push the launch of the product, currently scheduled for this month, back to April.
“The upcoming iPad launch may be somewhat limited as a manufacturing bottleneck has impacted production of Apple’s newest device,” Misek wrote. “An unspecified production problem at the iPad’s manufacturer, Hon Hai Precision, will likely limit the launch region to the U.S., and the number of units available to roughly 300K in the month of March, far lower than the company’s initial estimate of 1,000K units.”
“The delay in production ramp will likely impact Apple’s April unit estimate of 800K as well,” he wrote. “It is also possible that, given the limited number of units available in March, the launch will be delayed for a month.”
Delay Could Help Competitors
That puts iPad sales through the end of June — the close of Apple’s third quarter — at just 550,000 iPads. Misek predicted sales of 1.2 million in fiscal 2010, which closes in September — once all the production problems are worked through. He is still looking for 3.5 million units in fiscal year 2011.
At the end of the day, however, the delay shouldn’t be a big deal. “We believe that the only material impact from the iPad delay could come in the form of frustrated consumers and some modest loss of lustre for the company’s product launch,” Misek wrote.
Unlike previous Apple products that have defined categories, the iPad is entering a crowded market for tablet devices. A serious shortfall could inure to competitors’ benefit. “It really depends on when…