According to Mark Moskowitz of JP Morgan, Apple’s (NASDAQ:AAPL) orders to its iPad vendors have been cut by as much as 25%! This may mean slower times for companies like Hon Hai Precision Industry, whose supplies could reduce to 13 million units in the fourth quarter from 17 million units in the third quarter. This is the first rumored big drop for iPad orders.
Moskowitz offers three possible reasons for such action: the slow-down in Europe, a strategy by Apple to operate with reduced inventories, or a reduction in legacy supplies to make way for the new iPad 3. Interestingly, Moskowitz has not lowered his projection for iPad sales in the third and fourth quarters. He still estimates a range between 10.9 million to 12 million units.
Apple’s (NASDAQ:AAPL) stock is trading at $395.00 today, down 2.30%. Shares are up 38.31% in one year. The stock’s trading range for the year is between $275.00 and $422.86.