Bloomberg is reporting that Apple is reducing orders all along the Chinese supply chain for the iPad 2, which will also mean a significant reduction in orders for Foxconn, the China-based company that assembles the devices. The drop was noted by JP Morgan analyst Mark Moskowitz. As for why, it could be a lot of things, most obviously good ol' decreased demand as the European economy gets yet shakier and things are all blah over here as well. It could also be an anticipation that as buzz starts to build for the iPad 3, coming some time earlyish next year (we suspect), that people will hold out for the new shiny thing. The big question will be how much the Amazon tablet (we call it the Amulet around the office here though we suspect that will not be the final name) affects the overall tablet market and iPad sales in particular.

Business Insider says it might be because Foxconn is getting ready to open in Brazil.

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