Apple Shifts iPad 2 Display Orders from LG to Samsung Due to Quality Issues

DigiTimes reports that Apple has been forced to shift some of its orders for iPad 2 display panels from LG Display to Samsung and Chimei Innolux after quality issues at LG resulted in unacceptable yields with the panels failing to pass drop tests. Apple has reportedly suspended new display orders with LG, which had been the largest panel supplier for the iPad 2, until the issues can be addressed.

LGD's 9.7-inch panels for the iPad 2 reportedly failed to pass drop tests, during which their backlight units (BLUs) failed, the sources said, adding the panels' yield rates were unable to meet Apple's requirements.

While LGD is working on solutions, the maker's monthly shipment goal of four million units has become unlikely. July shipments of the 9.7-inch panels reached only 2.5-2.6 million units, the sources said.

Much of the slack appears to have been taken up by Samsung, which reportedly produced nearly two million iPad 2 display panels during the month of July, significantly higher than its usual monthly output of slightly over one million panels.

ipad 2 oblique
Problems at LG and competitive issues with Samsung could serve to benefit Chimei Innolux, which is attempting to increase its share of display production for the iPad 2. The company's close relationship with iPad manufacturing firm Foxconn could also drive more production to Chimei Innolux going forward.

Apple initially struggled to meet strong demand for the iPad 2, with production constraints resulting in lower than expected sales during the device's launch quarter. But shipments grew last quarter to over 9 million units as Apple's production finally ramped up to meet the demand, and just last week the company dropped shipping estimates for new iPad 2 orders to the minimum "within 24 hours".

Related Roundup: iPad
Buyer's Guide: iPad (Neutral)
Related Forum: iPad

Top Rated Comments

840quadra Avatar
130 months ago
Interesting how a company that it is currently suing, is also the savior for the product for which they are suing to protect.
Score: 13 Votes (Like | Disagree)
KnightWRX Avatar
130 months ago
This just goes to prove one thing : The only people getting emotional over lawsuits are the forum dwellers. For companies, it's business as usual.
Score: 6 Votes (Like | Disagree)
nerdo Avatar
130 months ago
Samsung made them an offer they couldn't refuse.
Score: 4 Votes (Like | Disagree)
Mr. Gates Avatar
130 months ago
APPLE: " Hey old buddy ! We need some more of those screens we previously told you to shove up your ass"

Samsung: You have some balls Apple, are you going to drop the Lawsuit ?

Apple: NO !

Samsung: Then go F'k yourself !


*** I know Samsung isn't that smart but I wish they were. A strong company would use whatever leverage they had to keep business going ***

Every single story on MacRumors today is about Apple being the biggest Jerks around.
Score: 3 Votes (Like | Disagree)
xionxiox Avatar
130 months ago


Yeah, as much of a apple fan as I am, If I was samsung I'd literally tell them "haha ****ing ha, h-****ing-a, good luck with LG, I'll now sue you, for sueing me, whom supplies all the major parts for your hottest selling items your company has ever made." A la iPhone processor, iPad processor, amongst many others. I know that's mumbo jumbo but that's a ballsy move by apple.

And Samsung would lose millions of dollars from their biggest customer. :rolleyes:
Score: 3 Votes (Like | Disagree)
nwcs Avatar
130 months ago
Makes perfect sense. Samsung's LCD manufacturing is a separate entity from the corporate parent. And it's totally normal for companies suing each other to still work together. It'd be petty and amateurish to do otherwise. And neither company got to their current size by acting stupid.
Score: 3 Votes (Like | Disagree)

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