iPad 2 production shortfall cause: LCD and speaker issues

IHS iSuppli cut its forecast for yearly iPad sales following Apple's earnings conference call on April 20. iSuppli predicts the Cupertino company will ship 39.7 million iPads in 2010, a 9.1 percent reduction from its earlier forecast of 43.7 million.

Apple confirmed during its earnings conference call that iPad 2 demand significantly outpaced supply. The iPad 2 flew off the shelves in Q2, and Apple sold every tablet it manufactured. According to iSuppli, Apple's manufacturing is constrained by a shortage of the new speaker that graces the iPad 2. Unknown quality concerns with the LCD display may have also played a role in this less than optimal rate of manufacturing.

Demand for the iPad is expected to be strong for the rest of the year with a continuing production shortfall limiting the total yearly sales. During the Q&A session after the earnings call, Apple would not comment on when the supply of the iPad 2 would catch up with demand. Fingers crossed it happens soon so that prospective iPad owners no longer have to camp out early at their local Apple Store each day.

[Via MacRumors]