Tablet Sales Could Weaken on Speculation of Second-Generation Apple (AAPL) iPad

Apple Inc. (NASDAQ: AAPL) is expected to unveil its second-generation of the the popular iPad tablet computer, which could cause many consumers to hold off on purchasing a tablet, according to a report from DigiTimes.

The report cites sources from overseas suppliers that expect the launch of a new iPad to seriously weaken the tablet offerings from of other companies and some believe that the overall tablet sales will suffer in 2011.

"Since consumer demand for tablet PCs is still limited, while most upstream and downstream players are over-optimistic about the market, tablet PCs may see a sharp drop in demand as soon as the third quarter of 2011, after a big battle in the second," the report said.

Currently analysts have tablet sales reaching between 45 million and 55 million next year, while some analysts have Apple selling as many as 48 million iPads in 2011.

However some analysts have lowered their expectations for iPad shipments in 2011, including Oppenheimer predicting Apple selling 23 million iPads, while Needham & Company sees only 18 million iPads shipped next year.

Rumors surfaced last week that Apple plans to build 40 million iPads next year.

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