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.
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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.
Apple has now caught up with demand of its 15-inch Retina MacBook Pro, with shipping estimates dropping to just 2-4 business days this morning. But if you’re holding out for the 13-inch model, your wait could soon be coming to an end. According to one analyst, 13-inch 2560 x 1600 Retina displays have now entered production ready for an October launch.
Longtime supplier of smartphone panels to Apple, LG Display, has begun producing a new, thinner display that is thought to be for use in the upcoming iPhone 5 from Apple. The production schedule is in line with the rumored September 12th announcement of the new iPhone model.
Following yesterday’s report from Bloomberg that revealed Apple plans to release the long-awaited iPad mini this September, a new report from The Wall Street Journal has this morning added even further credence to those claims.
According to “people familiar with the matter,” Apple’s suppliers are preparing for mass production of a new iPad with a display smaller than 8 inches, which is expected to begin in September.
Apple’s new iPad is still selling like hot cakes, and new customers continue to face a 1-2-week shipping delay when purchasing through the Apple online store. But the company is reportedly struggling to meet demand with production constrained by Retina display supply and the recent cuts to factory worker overtime at Foxconn.