iPad Mini May Be in Short Supply

Apple new iPad

One analyst speculated that the development of Apple’s so-called iPad Mini will be a “no walk in the park for suppliers.” He also warned that suppliers are less likely to meet demand when the device becomes available.

Challenging Specifications, Frustrating Yield Rates

Last Thursday, Topeka Capital Market’s Brian White revealed that he heard suppliers stating that the specifications for the iPad Mini are somewhat challenging. Thus, it is expected that the yield rate for the device will be “frustrating.” Nevertheless, the analyst said in a nod to investors that the company is still right on track.

Despite continued yield challenges; the supply chain feels the much anticipated iPad Mini is on track to reach acceptable volume levels for a launch over the next month. That said, we believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch.

He also claimed that the iPad Mini will be available for around $250 to $300. It is also expected that the 7-inch tablet will sell between 5 million and 7 million units within the December quarter.

Despite the low price point, we expect Apple to maintain iconic aesthetics of the current iPad and blow away what competitors are offering in this smaller form-factor tablet market.

Prior to this, White believed that Apple would introduce its much-awaited iPad Mini in September. However, it was postponed beyond his original expectation due to apparent yield rates in the production.

This is not the first time that Apple encountered production issues with its devices. In fact, the company experienced the same situation with the iPhone 5. Because of production constraints regarding the mobile phone, its estimated shipping remained at three to four weeks from the company’s U.S. online store.

On Going Production and Component Leaks

Earlier this week, The Wall Street Journal reported that mass production for the iPad Mini is underway at Apple’s suppliers in China. The tablet is expected to feature a 7.85-inch display, which will have the same resolution as the iPad 2.

With the production of the smaller tablet already started, a bevy of component leaks that claimed to be from the iPad Mini surfaced online. AMOG reported last Wednesday that an industry website, Ukrainian iPhone, posted images of the iPad Mini’s components.

The images suggest that the headphone jack will remain at the top of tablet, while the bottom of the device features a small space for the Lightning connector. On the other hand, the rear panel includes a nano-SIM tray and a space for a rear-facing iSight camera, while the front panel has a thin side bezel and a space for a Home button. There is also a space for the front-facing camera.

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