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iPad production close to meeting demand; iPhone 4 levels to follow soon

August 19, 2010 by Kelly Hodgkins - 1 Comment

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The low inventory that has plagued the “delicious” iPad since launch is soon coming to end, according to Susquehanna Financial analyst Jeff Fidacaro and Barcaly’s analyst Ben Reitz. In a recent research report, Fidacaro noted that iPad production is ramping beyond expectation with 4.75 million units predicted to go out the door in Q4 2010 alone. This increase in supply is reducing the backlog of orders created by this unexpectedly high demand. Apple is catching up as iPad models available on Apple’s website are now shipping in 3-5 days, down from the previous 7-10 day window.

Reitz chimed in with his analysis of iPad supply and demand by focusing on availability at Best Buy retail locations. The weekly survey results show that inventory for all iPad models has shown significant improvement over the past week. Good news for those looking to score an iPad in the immediate future.

While iPad production is finally reaching a harmonious balance with demand, iPhone 4 sales still outpace supply. iPhone 4 orders placed online through Apple’s US website incur a three week delay in shipping, while online orders from AT&T are delayed a minimum of 5-10 days. All is not doom and gloom, though, as at least one prominent analyst sees a change on the horizon. According to Rodman & Renshaw analyst Ashok Kumar, iPhone 4 production bottlenecks are beginning to ease earlier than expected and supply will soon catch up with demand.

The take home message here is two-fold. First, if you want the instant gratification of purchasing an iPhone and walking out of the store with a phone in hand, then hold on just a little longer as inventory increases are on their way. Secondly, if you managed to score an iPhone 4 and are looking to profit on this excessive demand, you better get busy selling as your window of profitability is beginning to close.

[Via Macrumors]

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