Apple Reduces iPad Screen Production

by Mike on January 19, 2013

Apple Reduces iPad Screen Production

It’s been a tough week for Apple. With the Cupertino company expected to announce their quarterly earnings shortly, speculation is rampant as to just want all of the announcements that we have heard over the past few weeks will mean towards the company’s bottom line.

A new report from Reuters is suggesting that Apple will be asking Sharp to scale back its production of 9.7-inch iPad display screens to a minimal level. The reason for this is when given a choice, customers are choosing with their wallet to buy the iPad mini over the full sized iPad. However, what we do not know is to what extent iPad mini sales have cannibalized iPad sales as Apple has not released this data. In addition to Sharp, Apple also relies on two other manufacturers for screens and they are Samsung and LG. As we know, the last year has seen a bitter split between Apple and Samsung and because of this, Apple has been slowing dropping their orders from the South Korean manufacturer as well.

All of these changes regarding Apple’s iOS tablet comes on the heels that Apple was also reducing orders for iPhone 5 components. This fuelled even more speculation that Apple was seeing lower iPhone 5 demand while others suggested that efficiencies in the manufacturing process meant less had to be ordered. All of this has translated into Apple’s share price dipping below $500 for the first time in many years. Next week, the company will reveal their first quarter results and this will finally put to rest some of the speculation as to how many devices the company is selling.

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