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iPad Mini supply shortages will hit sales, warns analyst

iPad Mini supply shortages will hit sales, warns analyst

Looming supply shortages will prevent the iPad Mini from racking up the kind of record-breaking sales figures some industry figures have predicted, an analyst forecasts.

Apple is rumoured to be releasing the as-yet-unannounced iPad Mini, which purportedly features a 7.85-inch screen compared with the standard model’s 9.7-inch display, next month.

The slate’s mooted price point of between $249-$299, coupled with Apple’s undimmed brand power, is expected to result in huge demand and a serious dent to the appeal of budget-priced Android rivals, such as the Google Nexus 7.

According to Brian White of Topeka Capital Markets, however, sales of the micro-sized Apple slate could be hampered by limited supplies, which have been caused by problems in manufacturing the screen at price that suppliers have agreed.

His claims chime with earlier reports that Sharp was struggling to turn a profit on the displays it is churning out for the iPad Mini.

In a note to investors, White states: "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."

Other details of the iPad Mini remain a matter for speculation right now. However, speculation suggests it will recycle parts from earlier models and dispense with 3G support and a rear-facing camera in the name of keeping costs down.

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