Apple Cuts iPad Orders: Rumor

Tickers in this article: AAPL

NEW YORK (TheStreet) -- Apple (AAPL) has reportedly cut production of both the iPad and iPad mini, taking estimates way down.

According to DigiTimes, the tech giant has lowered its shipping estimates for the iPad to 33 million, way down from 60 million. However, it's drastically upped the estimates for the iPad mini, moving to 55 million, up from 40 million. Overall, Apple lowered its year total estimate to 88 million tablets, down from 100 million.

DigiTimes received the information from several industry sources. In the past, DigiTimes has been spotty with its track record on Apple-related rumors, but this one may have some merit.

Earlier today RealMoney Pro's Doug Kass tweeted that there may be cuts to some of Apple's higher margin products. Kass was recently named the "bear on Berkshire" by Berkshire Hathaway (BRK.A) CEO Warren Buffett.

Morgan Stanley Tech notes this morning indicates more production cuts likely in higher margined Apple products. $AAPL— Douglas Kass (@DougKass) March 7, 2013

This rumor comes after several analysts have cut earnings estimates for both the iPhone and iPad. Last week, Credit Suisse cut its estimates on iPhone concerns, while Barclays Capital and Citi took down estimates on both products for various reasons.

After starting the day in negative territory, shares of Apple recently were up 0.9% to $429.50.

Apple has not yet responded to TheStreet's request for comment on this story.

--Written by Chris Ciaccia in New York

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