New report says that the largest iPad 2 display supplier faces quality issues and is not meeting production goal.
The Apple iPad 2 just started shipping within the usual 24 hour time window from the Apple Store, marking the end of the shortage that has existed since launch. There could be another shortage in the near future though. Digitimes reports that LG Display, which is the largest supplier of display panels for the iPad 2, is facing quality issues. Apple has suspended new orders from LG until they fix a problem connected with failing backlight units. Apple has shifted to Samsung and Chimei Innolux to meet the demand.
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LG Display has planned to produce 4 million panels per month though. In July LG only made about 2.5m according to the report. Samsung has made 1m units so far, but has produced 2m in July to help meet the demand. Chimei Innolux is still ramping up production and only contributed 450,000 units. If LG does not get their production volume up soon than the crucial Holiday shopping season could be in jeopardy for iPad 2 sales.
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Amidst the patent war between Apple and Samsung, I do not think Samsung is too motivated to help Apple with even more panels. As reported yesterday, Apple got a judge in Germany to ban the sale of the Samsung Galaxy Tab 10.1 in Europe.