According to an article on Bloomberg, Apple Inc. (NASDAQ:AAPL)’s suppliers have started mass production of new iPads and they will be released by the end of this year. Bloomberg quoted inside sources, without disclosing names, and claimed that Apple is making two new iPads. One is a full-sized iPad with a 9.7-inch screen, whereas the other is a new iPad mini having a 7.9 inch screen. Apple Inc. (NASDAQ:AAPL) has faced a massive decline in iPad sales since past two quarters and the tech giant is desperate to stimulate the growth in its slate line. Two new iPads are reported to be revealed by the end of the current year and many experts think that they will be revealed after the launch of iPhone 6.
Bloomberg said that when Apple Inc. (NASDAQ:AAPL)’s spokeswoman Trudy Muller was contacted about this news, she refused to comment. The timing of the launch of new iPads is very crucial, according to the article. Experts also think that the iPhone 6 launch will cannibalize the iPad sales. iPad sales are not giving much revenue to Apple, whereas the iPhone has given the massive revenue stream to Apple in the past.
Hon Hai Precision Industry Co. and Pegatron Corp. are the main suppliers of the company. Apple Inc. (NASDAQ:AAPL)’s suppliers are desperately looking for new product launches because of the fact that they have been on the low side of the market in the first quarter. New iPads will give a huge boost to the Apple suppliers. Bloomberg said that increasing the screen size of iPad can give an increase in the sales to Apple Inc. (NASDAQ:AAPL).
“The one weak spot for Apple Inc. (NASDAQ:AAPL) has been the tablet market, a refresh could stabilize the iPad’s revenue and profitability contribution to the company,” Bloomberg quoted Amit Daryanani, an analyst with RBC Capital Markets.