Purported Production Shortage Set to Propel iPad Rental Interest

Hysteria is sweeping the world, not as damnation and brimstone are expected, per say, but as word spreads of a potential iPad 2 shortage.

Thanks to a fatal explosion at the Foxconn factory in China, that magical place where iPad 2s are assembled, some industry analysts are predicting these desirable tablet devices will become even rarer than they already are.

We do have many of the latest Apple iPad rental units available in our global warehouses, but we foresee a demand for them growing as the shortage becomes even more publicized. Bloggers and news sources alike are exploding (pardon the pun) with postulations and theories of conspirative scope.

According to PC Magazine, Brian White, an analyst with Ticonderoga Securities, said "It will definitely impact production, but this isn't something that will be material to Apple's earnings.”

And Maynard Um, of UBS’ Investment Research division, said "Although the issue is unlikely to help supply issues to meet strong global demand, we see this issue as temporary and note there are few companies in our coverage that have as strong an end demand picture.”

Part of the reason for this confidence comes from the fact that the Foxcomm plant that suffered the tragedy only produced about 20 percent of the iPad 2s – and production has now shifted elsewhere.

But despite the sunny outlook of certain esteemed individuals, Apple’s stock is tumbling on the open market. Wall Street has its own version of the events, it seems, and is sparking a frenzy of its own.

All in all, it’s good for us – because the increase in publicity will certainly increase demand, especially among our business clientele.

That’s because many companies often demand the latest technology when they rent a new product – for several reasons. Firstly, if they intend to buy said product, and are preparing to buy them in bulk, it can be somewhat of a reassurance to test-drive them first (which is where our flexible contracts come into play).

Another reason we’ll see companies rent tablets, netbooks or the next new fad is to use it at temporary or off-site locations. They aren’t quite ready to commit to the new technology, but they want to put their best face forward at an event (understandably).