Snagged by manufacturing, Apple's iPad may be delayed

The release of Apple's anticipated iPad may have hit delays, according to one analyst on Monday.

The iPad, Apple's upcoming tablet computer, was slated for release towards the end of March, the company said on its unveiling.

However Canaccord Adams analyst Peter Misek said today that a manufacturing bottleneck may push the release beyond what's anticipated.

An unspecified production problem at the iPad's manufacturer, Hon Hai Precision, will likely limit the launch region to the US and the number of units available to roughly 300K in the month of March, Misek told clients on Monday.

The result will make for far lower units than the company's initial estimate of 1 million units at launch, he explained

It is also possible that, given the limited number of units available in March, the launch will be delayed for a month.

While consumers waiting for the device may be upset, the delay most likely will not affect Apple's bottom line.

Wall Street is expecting the Cupertino-Calif.-based consumer electronics company to sell between 1.7 million to 4.9 million units in fiscal 2010 and 2011 respectively. Given the potential for delays, Misek still forecasts 1.2 million to 3.5 million units.

Our iPad estimates are unchanged given the conservative expectations already built into our model, Misek said, reiterating a BUY with a 12 month target of $250.

Revealed in January by CEO Steve Jobs, Apple is banking that the new device will become a new platform for media companies to make money in the digital world.

The device, described as a giant iPod touch by some industry observers, will let users brows the Internet, read periodicals and consumer other multi-media.

Prices start at $499.