iPad Mini delivery could slow down due to supply issues

Apple announced the all new 7. 9 inch iPad Mini yesterday, and the product is going to be a hit according to many analysts due to its low price tag and the fact that it is still an iPad. But there have been rumors from quite some time that the Cupertino tech giant will not be able to meet the demand with the supplies due to issues with the manufacturing of the smaller tablet. The display units are posing most of the problems.

Samsung has been the major supplier of display units for most Apple products. But now, due to the patent war going on between the two major tech companies in the world, they are not really comfortable in working with each other. So the Cupertino tech giant has been buying supplies from other two companies, LG Display and AUO.

Richard Shim, an analyst at NPD DisplaySearch, told CNET in an interview that “We’re now starting to see the issues that [Apple] is having with Samsung.” AUO is a smaller company compared to both LG Display and Samsung, and hence, the company is not able to meet Apple’s demands in both quantity and quality. So the Cupertino based iPad maker is mostly dependent on LG Display, which is doing its best to keep up with the supplies. In a blog post, Shim writes:

AUO is having yield issues with the 7.9″ panel…AUO shipped just over 100,000 units. The production plan is reach 400,000 units in October, 800,000 units November and 1 million in December.

On the other hand, Shim says that LG Display supplied 300,000 display panels in September and plans to supply 1 million units in October. And by December, the company plans to reach up to 3 million display units. Shim wrote in his blog:

The new low price point is expected to appeal to a wider audience and drive up demand. However, panel supply chain indications point to an even more than typical tightness in the market for the iPad Mini.

Samsung and Apple appear to be winding down their relationship most likely due to the legal conflicts the two have been embroiled in recently.

It is to see how many iPad Minis the company will be able to deliver starting November 2nd.

Source: CNET