AU Optronics, one of Apple’s display manufacturers for the iPad mini, is set to decrease its shipments from 4 million units in the first quarter of 2013 to between 2.5 and 2.8 million units in the second quarter, according to sources in the supply chain.
The move comes as we enter a traditionally quiet period for consumer spending.
The iPad mini is still less than six months old, and already demand has dropped as fans await the second-generation model. That’s if you take any notice of DigiTimes, which is reporting that iPad mini shipments will decline by as much as 30% during the second quarter of 2013 due to dying demand.
Apple’s fifth-generation iPad will enter production between July and August, according to supply chain sources in Taiwan. The device is expected to sport a thinner, lighter design much like that of the iPad mini, with smaller bezels around its display.
Apple is gearing up to send its much-anticipated “iTV” into mass production during the second half of this year, according to sources in the Cupertino company’s supply chain, who have been speaking to DigiTimes. The set will reportedly boast a 4K “Ultra HD” display with a 3840×2160 resolution, and it’ll be controlled by voice and motion.
Apple is set to deal Samsung yet another blow by snubbing its displays for all future iOS devices. According to a new report from the Korea Economic Daily, the Cupertino company will purchase panels from Sharp, LG Display, Japan Display, and AU Optronics instead.
Sharp has “nearly halted” its production of 9.7-inch iPad displays as consumers shift their demand towards the smaller iPad mini, Reuters reports. Sources familiar with Sharp’s plans have claimed that production of the larger panels at Sharp’s Kameyama plant in central Japan has fallen to the “minimal level” this month following a gradual slowdown that began at the end of 2012.
The news follows speculation that the iPad mini has been “cannibalizing” sales of the larger model since its debut last November.
Apple’s share price has plummeted this morning, following an earlier report that said the Cupertino company had cut iPhone 5 component orders due to weaker-than-expected demand. When the market opening on Monday morning, Apple stock dropped to $16.23, or 3.1%, to $504.07.
Apple’s decision to give Samsung Display the boot over the iPad mini may be one that comes back to haunt the Cupertino company. Its tiny tablet is expected to be a smash hit this Christmas, but Apple is said to be battling with supply constraints as one of its two display manufacturers struggles to meet the demand.
It seemed like Apple was coping well with the iPhone 5 demand, despite it being the company’s fastest-selling iPhone to date. Sure, pre-orders sold out within the first hour of availability, but those who were told they wouldn’t get their new smartphone until October have already begun receiving shipping notifications.
But iPhone 5 production may have hit a stumbling black. The handset’s new 4-inch display, which boasts in-cell touch technology that allows it to be incredible thin, it reportedly causing “significant production constraints” that mean Apple cannot produce the device fast enough.
Sources for Bloomberg have corroborated recent iPad mini rumors by confirming that the device will launch this October with a 7.85-inch display supplied by AU Optronics and LG Display. This will be the first time AUO, which supplies displays for Apple’s MacBooks, will supply a display for one of the Cupertino company’s iOS devices.
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![iPhone 5’s New In-Cell Touch Display Is Causing ‘Significant Production Constraints’ [Report]](http://cdn.cultofmac.com/wp-content/uploads/2012/09/iphone57.jpg "iphone5")
