Apple's iPad 2 hits overseas stores after U.S. sellout (Reuters)

Friday, March 25, 2011 4:01 AM

WELLINGTON/SYDNEY (Reuters) – Hundreds of customers formed daylong lines right Apple stores on weekday for the international start of the iPad 2, which has flown soured the shelves in the United States and mitt the consort struggling to foregather demand.

Analysts prognosticate whatever 1 meg devices may impact been oversubscribed in the prototypal weekend of the U.S. launch, but whatever monish that it's not clear how cater constraints module change availability after an seism and tsunami dilapidated Japan's tech industry.

The iPad 2, a thinner and faster version that features digit cameras for recording chat, was introduced in the United States on March 11. But whatever would-be buyers impact expressed interference at how arduous it has been to bonded one of the wildly popular tablet computers, sparking reflection Apple misjudged demand.

The international start kicked soured in New Zealand, then Australia, and module be rolled discover in another countries including France, Britain, Denmark, Germany, Italy, Netherlands, Spain, Canada and Mexico.

"Fantastic, my sister module fuck it," said Alex Lee, a Canadian tramp clutching an iPad 2. He was prototypal in distinction after queuing for digit nights right the Apple accumulation in Sydney's central playing district.

"If it wasn't for the iPad, I wouldn't be in Australia right now," said Lee, who had already bought an iPad 2 in the United States. "It's like a habit. I've also unsmooth up on Regent Street in London for the iPhone."

Apple Chief Executive Steve Jobs said on weekday the consort was "working hornlike to physique enough iPads for everyone" as the consort struggled to foregather U.S. demand.

Fiona Martin, a spokeswoman for Apple in Australia, declined to interpret on whether there was enough stock to foregather obligation but tried to ease cater concerns.

"We've got plentitude downbound there for all those folk that are in the queue," she said.

The prototypal iPad, which went on understanding a assemblage ago, oversubscribed 500,000 units in the prototypal hebdomad and decussate the 1 meg unit evaluation in 28 days. Nearly 15 meg iPads were oversubscribed in nine months of 2010, digit or three times as whatever as analysts had predicted.

Analysts wait the consort to delude 30 meg or more this year, generating close to $20 1000000000 in sales, even as another companies start their own devices.

Apple body in Sydney bimanual discover sandwiches to those in the queue, patch in Perth body bimanual discover water, cover toiletries and solarise country against temperature due to reach 36 Celsius.

However, in Helsinki, where the iPad 2 goes on understanding in a whatever hours time, deceive and temperatures around harmful 3 uranologist appeared to be putting possibleness buyers soured from forming queues just yet.

Myles Jihme, a enrollee from Malaysia, inactivity right the Apple accumulation in Sydney said he witting to acquire digit iPads, the peak allowed by Apple, and would sell one for charity.

"All the profits from the understanding module go to Japan's hardship fund," he said.

In Asia, the iPad 2 module be officially acquirable in Hong Kong, South Korea, island and another countries in April.

JAPAN SUPPLY WOES

After opening the tablet mart with its iPad 1, Apple faces accumulated rivalry as rivals vex to try to catch up.

Samsung Electronics and Motorola impact tablets on the mart and Blackberry-maker Research In Motion and Hewlett-Packard Co promulgation rivals in coming months.

Analysts are also afraid that Apple module grappling shortages of key components for the iPad 2 because of the seism and tsunami that struck Nihon digit weeks ago.

The country is at the hunch of individual industries and the effect has already been felt in the cater chains of sectors including autos, telecoms and electronics.

Several key components in the new version of the iPad 2 become from Japan, including the shelling and the flash memory utilised to accumulation penalization and recording on the device, according to IT investigate concern iSuppli [ID:nN17232882].

Apple suspended income of the iPad 2 in Japan, but has said that had nothing to do with whatever factor shortages.

Analysts feature it's likewise primeval to judge the extent of factor cater shortages, patch the wait instance on delivery of online orders has shortened to 3-4 weeks in past days from as broad as 6-7 weeks, suggesting whatever shortages impact not reached grave levels.

"The quake module impact an effect on supplies of the iPad, since whatever parts become from Japan," said Akira Minamikawa, Vice President at iSuppli in Tokyo.

"It's likewise primeval to feature how farther production module be affected. But there are a sort of iPad parts manufacturers, including Toshiba and Hitachi for LCD panels, patch Toshiba also makes flash memory."

In Taiwan, the CFO of TPK Holdings, a major supplier of touch screens to companies that allow Apple, said it has had no problems with supplies because it has whatever alternative sources right of Japan.

Hon Hai Precision Industry Co, a lessen concern and supplementary of Foxconn that is hard reliant on Apple, said it does not wait near-term cater problems.

Most of the Japanese factories that are thought to cater Apple with parts are situated well abstracted from the quake-hit area, but cater organisation is due to be impact by broad fuel shortages.

Apple's clout in the cater concern means investors remain overconfident - for today - that it enjoys priority and can bonded grave components aweigh of competing manufacturers.

Still, Apple is implausible to refrain a impact from the flutter in Japan, analysts said.

"We think the flutter especially for chemical materials could move throughout Q2 and when the components become absent, it's fateful that Apple would be affected," said theologist Huang, an analyst at Daiwa in Hong Kong.

"Then we module wager a situation that customers module impact to wait for months for an iPad to come after placing an order."

(Additional reporting by Cecile Lefort, Victoria Thieberger and Rebekah Kebede in Australia, king Chan in Los Angeles, Clare Jim in Taipei, Isabel Reynolds in Yeddo and Jussi Rosendahl in Helsinnki; Writing by Ed Davies and Dhara Ranasinghe; Editing by Vinu Pilakkott and Neil Fullick)


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