Sharp Reportedly Cutting Down on iPad Screen Production
Posted 01/18/2013 at 1:17pm
| by Matt Clark
Only a week after reports began to show up claiming Apple has cut part orders on the iPhone 5, sources are now claiming Sharp has reduced production of iPad panels. While it's not immediately clear if the decrease in manufacturing is related to the popularity of the iPad mini or an impending new device, one has to wonder exactly what's going on within Apple's supply chain.
According to sources speaking with Reuters, the Sharp facility in Kameyama, Japan has seen a significant decrease in the number of iPad screens being produced. The plant has reportedly stopped shipping the panels all-together, and the number of iPad screens in production currently is "extremely limited."
While there are a number of reasons to explain the production decrease--seasonal sales slump, higher focus on iPad mini parts--Sharp is not the only supplier of iPad screens. According to a source at Samsung, the rival supplier has not seen any major changes in its own manufacturing rates on iPad panels. Considering the ongoing turmoil, it's a bit strange to think Apple would keep orders high at Samsung, while decreasing orders from Sharp.
Personally, I think the most likely scenario involves a shift to more iPad mini-focused production. The mini is performing extremely well, and thanks to its lower entry point in regards to price, Apple may see the smaller device as a way to buoy the typical post-holiday retail slump.
Regardless of the reasons behind the manufacturing slowdown, the news may continue to cause problems for Apple on the stock side of things. Just recently, reports claimed Apple halved its orders for iPhone 5 parts. Allegedly, that slowdown was a consequence of less-than-expected sales of the new smartphone. Apple stock tumbled to below $500 as the news spread.
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