Apple Cancels Supply Schedule Of iPad 3 for 2H11 – Digitimes Report

Digitimes’ Yenting Chen and Joseph Tsai report that Apple has recently canceled its iPad 3 supply schedule for the second half of 2011, forcing a chain reaction with other tablet PC brand vendors set to launch same-level product, whi will be obliged to follow suit and delay their launches. Meanwhile iPad 2 production in the second half will be maintained at 28-30 million units, according to Digitimes’ sources in the OEM supply chain.

Chen and Tsai say Apple was originally set to launch its iPad 3 in the second half of 2011 with a supply volume of 1.5-2 million units in the third quarter and 5-6 million in the fourth quarter, but sources say Apple’s supply chain partners have recently discovered that the related figures have all already been deleted.

It is speculated that disappointing yield rates for 9.7-inch “Retina” panels featuring resolution of 2,048 x 1,536 may be the major reason for the supply delay, with Apple’s supply partners Samsung Electronics and LG Display are both unable to acheive a good yield.

Sources from panel players also pointed out that the high resolution 9.7-inch displays require a much larger backlight source and the iPad 2’a single edge light bar is only marginally able to reach satisfaction levels, which could also contribute to a delay in the launch for engineering to be modified.

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http://www.digitimes.com/news/a20110815PD218.html