Just as Apple released the coveted iPad Mini, reports streaming in suggest that issues with one of the display manufacturers could put the tablet in short supply. The reports suggest that pre-orders may be affected in the holiday shopping season.
Richard Shim, an analyst with NPD DisplaySearch, told CNET Tuesday that one of Apple's suppliers for the iPad Mini's display unit faced issues in meeting planned yield rates, effectively leaving only one fully-functioning provider.
For the 7.9-inch tablet, Apple ordered parts from LG and AU Optronics instead of Samsung. While LG shipped 300,000 panels in September, with plans to ramp up production to one million in October, 2.5 million in November and 3 million in December, AU apparently shipped 100,000 in September, ahead of a ramp up to 400,000 in October, 800,000 in November, and one million in December, AppleInsider has reported.
"We're now starting to see the issues that [Apple] is having with Samsung. The problem is that AUO is a new supplier, and they're not able to get to the volumes that Apple needs. So, essentially, there's just one supplier," Shim wrote in a blog post.
Shim also indicated in the blog post how the device's low entry price was "expected to appeal to a wider audience and drive up demand. However, panel supply chain indications point to an even more than typical tightness in the market for the iPad Mini."
Traditionally, Apple counts on two suppliers for hot-selling components. In the case of the third generation iPad, Samsung and LG took orders.
If initial demand for iPad Mini is strong enough as it was for iPhone 5, a stock out is almost a certain possibility, AppleInsider has added.