Digitimes reports that the production of the next generation iPad's high resolution Retina Display continues to be a problem, resulting in Chimei Innolux failing certification to become an LCD supplier for Apple's next tablet.
CMI has cut into the supply chain of iPad 2, which uses IPS panels, but the new Apple tablet is more demanding in terms of resolution, the sources said. The iPad 3 will feature a 9.7-inch panel with resolution of 2,048x1,536 compared to the iPad 2's 1,024x768.
Chimei Innolux is presently believed to be a display supplier for the currently shipping iPad 2.

The iPad 3, however, is believed to carry a 2048x1536 high resolution display that is double the linear resolution of the current iPad 2 screen of 1024x768. We first wrote of the possibility earlier this year when it was discovered that a version of Apple's iBooks application for the iPad already contained the necessarily double resolution (x2) artwork. Apple similarly doubled the iPhone's resolution from 480x320 to 960x640 when they introduced the iPhone 4.
Chimei Innolux is not alone in having yield difficulties with the new display. Samsung and LG are also said to have run into challenges. A previous report even claimed that it was these poor display yields which pushed the iPad 3's launch to 2012.
As big a jump as a 9.7" Retina Display sounds like, there has already been at least one official announcement of this level of high resolution tablet display. Samsung demoed a 2560x1600 10.1" LCD back in May, though based on somewhat different technology.
The original iPad's display was said to be the most constrained part for Apple, resulting in delays in shipments. As a result, Apple is believed to have invested $3.7 billion in display manufacturers in order to lock up access to LCD production facilities. The production from the earliest of those factory investments (Toshiba) are said to ramping as early as late 2011, while Sharp's new factories were to begin producing displays in 2012. The timing could fit with the next generation iPad.
Top Rated Comments
I suggest you buy glasses then :-) By no means is the display on the iPad of bad quality, but you can clearly see the individual pixels.
Yes. Yes they are.
Knight you miss the point, I'm no Apple fanboy not by a long way, however, I've held off getting the iPad as I have an iPhone4 and that caters more or less to the needs I have of a mobile device, however if the next gen iPad does feature a 'Retina' display then I will definetely buy it.... whilst I agree the screen on the current iPad is good, very clear, close to the touch etc... it is hardly 'HD' @ a res of 1024x768.... yes by the definition of television standards it is higher than 480p, watching a 720p or 1080p film on the device your not watching it at the native res, and if you are you get the irritating bars, as I mention IF they upgrade the display to over 1920x1080 I will definetely get it, and I believe alot of others will as well, however if they do go to that res then almost definietely they would need the A6 chip to power the device and certainly more RAM, and at the same time increase the maximum capacity availible as even 64gb won't fit that many 720p (circa 4Gb per film) or 1080p (circa 10-12gb per film) on the device, along with space for swap files, audio, apps, mail etc...
It is certainly something I would love to see as then Air Video on an iPad streaming 720p content would be awesome! iPhone 4 screen whilst nice isn't really that impressive when streaming 720p content...