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Apple Slashing iPad Holiday Orders by 25%, Says Report

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According to Bloomberg, JPMorgan Chase & Co. filed a report claiming that Apple is slashing holiday orders for iPad components by 25%. The move would decrease the number of manufactured units from 17 million in the third quarter to 13 million for the end of the year.

Bloomberg reports that the information comes from several supply-chain vendors and that it marks the first time analysts have seen Apple make a cut of this magnitude. The affected companies, however, were not mentioned.

Despite the slash, JPMorgan isn't planning on lowering projections for the third and fourth quarters, which stands between 10.9 million and 12 million units shipped.

The move suggests that Apple believes demand won't surpass the number of devices in the supply chain. Other reasons being bandied about: Apple is responding to the lower-than-expected demand for the iPad 2 in Europe, the imminent launch of the Amazon tablet, or that, simply, the iPad 3 is due to be released soon.

While JPMorgan's electronic manufacturing services team in Hong Kong say its never seen such a drastic cut, a similar move was done for the first-generation iPad prior to the release of the iPad 2.

We'll just have to wait and see.

(See also: iPhone 5 Defect Could Limit Supply, Says Report and Facebook Exec Accidentally Leaks Secret Info)

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