Tim Cook speaks! Apple's COO on Android, Japan, iPad 2


Demand on iPad 2 has been staggering. We're still amazed that we are still heavily backlogged, not only at the end of the quarter but also up to date. However, I can tell you that I'm extremely pleased with the progress of the manufacturing ramp and we were so confident that we rolled out 25 additional countries at the end of last month, and we are shipping to an additional 13 countries next week, and we're planning to add even more countries through the quarter. So I'm very confident that we can produce a very large number of iPads for the quarter. Whether that will be enough to meet demand, I don't know. Demand has been staggering and I'm not going to predict when supply and demand will come into balance. I can only be confident on supply side.

By the end of the quarter, we were in supply/demand balance in almost all of our major markets. And I would say, as of today, we're in supply/demand balance virtually everywhere. The other products, the Mac is in supply/demand balance, and the iPod is in supply/demand balance, and the iPad has the mother of all backlogs that we're working very, very hard to get out to customers as quickly as we can.

Product transitions are never simple, and as you can probably appreciate, we are in a position that we have to call them for many, many weeks in advance, in terms of how many of the current product we want to produce and the dates at which we will announce the new product.

We drew the channel down on the original iPad by 570,000 units during the quarter, and we added at the end of the quarter 170,000 of the new iPad 2s, although most of that was in transit at the end of the quarter. And so the net reduction was 400,000 and so our sell through was above five million for the quarter. And again, this has to be planned quite a ways in the future.