iPad Demand Expected to Drop

One analyst is predicting that the demand for the iPad is beginning to fade.

Bill Shope, a Goldman Sachs analyst, released a report earlier this week which suggests that Apple’s may lose its dominant position in the global tablet market if it doesn’t take some steps to boost demand. “The new Hon Hai forecast implies more limited upside to iPad units, which is disappointing for a December quarter. While improving holiday demand into late November could certainly push the momentum in the other direction, we believe it is prudent to assume the iPad is facing some near-term demand challenges.”

He thinks that Apple should consider dropping the price of the iPad. This would make it more competitive by placing it withing the reach of more consumers, some of whom balked at spending $500. He is probalby tight about the iPad needing a price cut; if you compare it to Apple’s past gadget then the ipad appears to be long overdue. The original iPad was launched over 20 months ago, and the iPad 2 is still selling at the original retail.