Are things not looking so bright for Apple? A report by JP Morgan this morning claims that the company has been cutting iPad orders from vendors. Several of those supply-chain vendors indicated that Apple cut iPad orders for the 4th quarter of 2011 by 25%.

This cut could translate in a drop from 17 million to 13 million iPads, something unheard of so far with Apple. Why such drastic measures?

Bloomberg provides an explanation:

“Reduced orders from Apple to iPad suppliers could reflect both weakening demand in Europe due to economic conditions there as well as a strategy by Apple, the world’s biggest company by market value, to operate with reduced inventory, Wanli Wang, a Taipei-based industry analyst at RBS Asia Ltd., said today.”

This damn recession!

With the Amazon tablet – possibly a strong iPad competitor – believed to hit the market just in time for the holidays, it seems that Apple’s move makes a lot of sense.

But don’t worry, Apple will make sure you can still get an iPad 2 for Christmas.

UPDATE: As I explain in the comments section below, the fact that Foxconn is opening a factory in Brazil has nothing to do with this order cut.

JP Morgan has since withdrawn this report due to inaccuracy.

  • Eric

    Wong. If you actually read the article it is decreasing production in china. Hmmmm. Could it be because the brazil plant comp and running. You post these blind idiotic articles from other sites withoutever using any deductive reasoning.

    • Wrong! If YOU actually read the article, you would have noted that it said Apple cut supply chain orders, which means it cut “parts orders”. The fact that Foxconn is opening a factory is Brazil has nothing to do with this because made in Brazil, in Mexico, or in India, the manufacturer would still need those parts… yes, the same parts for which Apple cut orders by 25%.

      Nothing will be made in Brazil. iPads will be ASSEMBLED in Brazil with parts coming from China. Brazil has nothing to do with this order cut.

      • sOleFresh

        Get’em Seb! Lol

    • bob

      wrong.. apple is reaching ipad saturation cause its expensive as hell… and 40% of flks who want it cant afford it..lol

      • Isaac

        wrong. The iPad it´s absolutely affordable. Its almost the same price as a notebook but way better. The iPad was designed for those who can afford a competitive computer but need something more portable. This 25% cut might just be what RIM had to do with their phones in latinamerica. They were sold just too much and thats why now they are in trouble. Read something about economy

  • TrollinFiasco

    First of all,props to Sen for a great article and a good read, second every body stfu….writers for iDB work hard finding this kind of info. Most articles arent for everyone; a little constructive critisism is alright but if you don’t like it move on,thank you

  • NickC

    First of all,props to Sen for a great article and a good read, second every body stfu….writers for iDB work hard finding this kind of info. Most articles arent for everyone; a little constructive critisism is alright but if you don’t like it move on, thank you

  • NickC

    Seb* sorry