Apple's target to take delivery of 40 million iPads from Taiwan suppliers in 2011 remains unchanged with shipment volume expected to top 6-6.5 million units, including over three million iPad 2 models, in the first quarter and to further expand to 10-12 million units in the second.

After producing 1.7-2 million units of the first-generation iPad in January, Apple began to phase out production of the old model in February, while beginning to roll out the iPad 2, according to component suppliers in Taiwan. Shipments of iPad 2 are expected to top 2-3 million units in March, the sources added.

With a shipment ratio of 4:6 for the first and second halves, shipments of iPad 2 are likely to reach 21.5-24 million units in the second half of the year, the sources estimated.