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Apple Pulls Back on iPad 2 Display Orders as iPad 3 Production Begins to Ramp Up

Digitimes reports that Apple has pulled back on its fourth-quarter orders for iPad 2 display panels, although the reduction appears to be part of an overall strategy to prepare for the launch of the iPad 3 early next year rather than a shortfall in customer demand. According to the report, Apple stockpiled components for an extra 4-5 million iPad 2 units during the third quarter, allowing it to reduce its orders for the fourth quarter.
Sales of iPads at the end market totaled 11.12 million units in the third quarter of 2011, according to data released by Apple. However, inventories of parts and components prepared by the makers in the supply chain for the production of iPad 2 in the quarter are sufficient for the production of 15-16 million iPads, leaving a stockpile of 4-5 million units of iPad 2 in the supply chain, the sources noted.
That explanation is in line with claims from analyst Chris Caso following rumors in late September that Apple would be cutting fourth-quarter iPad production. Caso claimed that Apple had "pulled in" production from the fourth quarter to the third quarter, accelerating its manufacturing timetable ahead of the holiday quarter.


The reason for this stockpiling of iPad 2 components appears to be preparations for the iPad 3 launch, as Digitimes also notes that suppliers of both display and touch panels for the iPad 3 have either already begun or will soon begin shipments to Apple.
While Apple is adjusting panel inventory for iPad 2, Samsung and Sharp already began shipping panels for the next-generation iPads to Apple in October, and Taiwan-based touch panel makers TPK Holding and Wintek will begin to ship touch panels for the new iPads to the supply chain in November-December, the sources noted.
The iPad 3 has been rumored to see an early 2012 introduction and is expected to carry a higher-resolution "Retina" display, although display suppliers have been said to be struggling to produce the panels in volume.

Related roundup: iPad Air 2

Top Rated Comments

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39 months ago
Is this the same analyst who said iPad 3 for fall of this year?
Rating: 18 Votes
39 months ago
iPad + retina display would be unstoppable.
Rating: 17 Votes
39 months ago

Is this the same analyst who said iPad 3 for fall of this year?


Probably, and I heard from an anonymous source that he's best friends with the analyst who predicted the "teardrop" iPhone 5.
Rating: 10 Votes
39 months ago
The looming iPad 3 release (hopefully less than four months) is the only thing holding me back from buying an iPad 2 today. Retina display and a bit more speed would make the device perfect.
Rating: 8 Votes
39 months ago

Yep, definitely!:rolleyes:

... did you go and see your eye doctor? Maybe it's not the ipad resolution?

11.12 million people more with eye strain after the initial millions of ipad 1 users.

On a side note, I wish MR would stop showing the Galaxy in this article, looks just like an ipad.


What?
Rating: 7 Votes
39 months ago

Would always be somebody who claims Andorid tablets has a better Super bright LCD display though.


Actually they would refer to some "Ultra Mega Super AMLOED Double-Plus with Cherry on Top" display.

Honestly, I cannot keep track of Samsung's display technology names for AMOLED displays.

I just recently discovered that the only AMOLED display that does not use those horrid sub-pixels that remind of the Apple IIc hi-res graphics is the one with the moniker "Super AMOLED Plus". All the others leverage those nasty sub pixels that try to make a single "white" pixel by placing two or more colored pixels adjacent to each other -- such displays require MUCH MUCH higher DPI to come close to the look of the Retina Display -- just one more case where the specs are misleading on DPI. It is similar to buying sheets where sometimes "thread count" means actual threads and sometimes it means "fibers that make up the threads". Sorry that the best analogy I could think of is in the linens industry.
Rating: 6 Votes
39 months ago
If iPad 3 has retina display I will hold to my plan of "sell the old iPad and buy the new one each year". Now that I retina display on the iPhone 4S I can't believe the difference.
Rating: 5 Votes
39 months ago
A friend of mine who works for Tylenol says they're ramping
up Q1 production in anticipation of the upcoming iPad 3D :p
Rating: 5 Votes
39 months ago

iPads do >90% of what 90% of people use their laptops for. If the processors continue improving (to allow more robust photo editing and 'creativity') the world will be using iPads instead of laptops in 3 years time. Don't care about the display. Give me A6!


You are absolutely correct. I switched from Netbook to iPad because it...
uses 100% of the screen to edit/use an application.
doesn't have unnecessary task bars.
doesn't have a fan distracting from what you have to listen to etc.
doesn't need a virus scanner.
has at least twice the battery life.
is lighter.
does everything I need faster.

Yes, there are drawbacks but they are not prohibitive for me. :cool:
Rating: 4 Votes
39 months ago

I would love to see the iPad 3 with an USB port for hooking up external drives. All of the other tablets have HDMI and USB ports. Why can't Apple. I could care less about the screen give me the ports.


Let me see if I got this right... You want a highly portable iPad, but you want to bedeck it with cables? You want a portable device held down with cables? WTF!!

Apple gives you the iCloud... FREE and you want ports on your portable device so you can hook it to non-portable drives?? Ports are so so so yesterday. I'm surprised you didn't demand a slide-out keyboard and mouse and modem ports too. Oh, and I forgot the built-in thermal paper printer and changeable batteries, true multitasking and Flash support.

Jobs has seen the future and the future doesn't have stinkin' ports. ;)
Rating: 3 Votes

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