Apple’s giant iPad could face display production issues

By

The iPad Pro could delay the iPad Air, cancel the iPad mini.
The iPad Pro screen could be nearly as big as your MacBook's Photo: CURVED
Photo: CURVED

Apple’s gigantic 12.9-inch ‘iPad Pro’ could be facing serious production issues, according to top Apple analyst Ming-Chi Kuo, who believes the tablet won’t enter mass production until the second quarter of 2015.

In a note to investors this afternoon, the KGI Securities analyst revealed that his sources say Apple will use an oxide display panel on the iPad Pro for a higher resolution, better color saturation, and quicker response, but putting that type of screen on the iPad Pro will take more time.

Few details about the iPad Pro have been leaked, but it will supposedly sport a 12.9-inch display, powered by a special A8X chip, in a form factor that’s only 7mm thick. Previous reports claimed production would begin in December, but Apple will need extra time for component yields on the oxide panel though, so production has been pushed back.

Kuo’s note also addressed future iPad sales, claiming overall sales will drop a staggering 54.5% in the first quarter of 2015 to a low of 9.8 million units. Highly unlikely considering Apple just announced 16.35 million iPads sold last quarter, which was one of its worst.

“We forecast iPad shipments will fall 54.5% QoQ to 9.8mn units in 1Q15, given a lack of new applications, tablet market saturation and slow season… We believe that, in a major shift, while Apple (US) used to be able to use new form factor designs to boost demand, it has failed to do so this time around. The lighter and thinner iPad Air 2 will face strong headwinds in increasing sales in 1Q15.”

We believe that, in a major shift, while Apple (US) used to be able to use new form factor designs to boost demand, it has failed to do so this time around. The lighter and thinner iPad Air 2 will face strong headwinds in increasing sales in 1Q15, we believe; we also hold that this means that iPad, along with the entire tablet market, is faced with structural challenges characterized by a lack of new applications and market saturation. We don’t think these challenges will be easily overcome by upgraded specs, new form factor designs or lower prices.

The iPad Pro’s larger screen is expected to address the need for ‘lack of applications’ when it launches next year with more tools like split-screen mode that should help professionals get more serious work done. Despite declining iPad sales, Tim Cook has remained optimistic about the tablet’s future, stating the current sales slump is just a mere speed bump.

Newsletters

Daily round-ups or a weekly refresher, straight from Cult of Mac to your inbox.

  • The Weekender

    The week's best Apple news, reviews and how-tos from Cult of Mac, every Saturday morning. Our readers say: "Thank you guys for always posting cool stuff" -- Vaughn Nevins. "Very informative" -- Kenly Xavier.