The new iPad mini may be cannibalizing full-size iPad sales faster than Apple (AAPL) expected. According to a report from Reuters on Friday morning, iPad display panel supplier Sharp has “nearly halted” production of the iPad’s 9.7-inch display. “Sharp’s iPad screen production line at its Kameyama plant in central Japan has fallen to the minimal level to keep the line running this month after a gradual slowdown began at the end of 2012,” Reuters‘ Reiji Murai and Miyoung Kim reported, citing information from multiple unnamed sources. According to the report, it is unclear how much of the slowdown is due to typical seasonal falloff and how much is due to demand weakening or shifting to the iPad mini. Canadian equity research firm Macquarie Research previously stated that it expects iPad sales to decline 40% sequentially in the first calendar quarter.