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Apple-Samsung feud leads to iPad mini supply shortage

October 24th, 2012 at 8:16 AM

It seems that Apple’s (AAPL) battle with Samsung (005930) could hamper the rollout of its latest tablet. CNET on Tuesday spoke with NPD DisplaySearch analyst Richard Shim, who said that Apple is having trouble getting its suppliers up to speed in producing components for the iPad mini. The major reason, said Shim, was Apple’s decision to ditch Samsung as a component supplier, which has left Apple with only LG Display (LPL) and AUO as iPad mini component suppliers.

“The problem is that AUO is a new supplier, and they’re not able to get to the volumes that Apple needs,” said Shim. “So, essentially, there’s just one supplier.”

Shim claims that LG Display shipped 300,000 iPad mini panels last month and has already shipped 1 million panels this month, with the goal of shipping 3 million in December. This means that Apple might not be able to meet orders for the iPad mini if demand is very strong right out of the gate.

“The new low price point is expected to appeal to a wider audience and drive up demand,” Shim said. “However, panel supply chain indications point to an even more than typical tightness in the market for the iPad Mini.”


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