Demand to outstrip supply for Apple’s iPad mini due to display yield issues, sources say

“Parts providers in Apple’s supply chain will reportedly have to wait until the first quarter of 2013 to see their revenues bump up as the result of Apple’s newly released iPad mini and 21.5- and 27-inch iMac due to mass production issues with the products, according to industry sources,” Siu Han and Alex Wolfgram report for DigiTimes.

“The sources said AU Optronics (AUO) and LG Display (LGD) provide panels for the iPad mini and that AUO is having mass production issues,” Han and Wolfgram report. “This has caused the overall shipment proportion of AUO panels used in the iPad mini to drop to about 22%, down from AUO’s original 40% target, added the sources.”

Han and Wolfgram report, “Apple is said to have set a ten million shipment target for the iPad mini for the fourth quarter of 2012, but might only reach six million during the period largely as a result of production delays at AUO, said the sources.”

Read more in the full article here.

19 Comments

  1. To: big investors

    Stop bullshitting and finding excuse !! all u is pushing down AAPL and get enough AAPL for the next rally . Ok ! I sell all of my AAPL to u !! I want u to stop !

    1. If you listen to every quarterly report you will hear, “If we could have made more we would have sold more.” Yes, Apple could sell many more than they can get made.

      Lets look at it the other way. IBM Surface is in stock and available today. Amazon’s plastic crap e-readers are in stock and available today. Isn’t Apple’s short backlog the “Picture Perfect” inventory model. When Apple gets caught up then Apple starts shipping to other countries. Is China all sold out yet?

  2. What really confuses me about all these constrained component reports is that Apple would have insured its suppliers capacity prior to placing an order. MIssing capacity by 45% is not acceptable, and would disqualify a supplier prior to the issuance of an order. Missing by that much does not happen overnight.

    For me, reports like this are meant to cover someone’s exaggerated early estimate of product shipments. If you go back, there have been reports of this type every single quarter for the past several years.

    1. Gt. …

      True… And what Billion dollar company do you run????

      Guessing the desire of public demand for each new product is hard, especially if you do not want to make more than you can sell. Just a thought.

      Norm

  3. Here’s something I don’t quite understand. These people know exactly how many iPad Minis Apple ordered. They know exactly how much in the way of yields, the supplier is getting. They know almost exactly how many iPad Minis Apple is going to get made. They obviously must have very good detective abilities.

    Now ask them how many Kindles Amazon has ordered, built, shipped or sold and I’m willing to bet they’ll be scratching their heads. Why is everyone privy to what Apple does and yet Amazon can operate in total secrecy? Who’s fault is that and why? I thought Tim Cook was supposed to be clamping down on Apple’s operations to stop these sort of info leaks. How come Jeff Bezos can keep these things under control and yet Tim Cook can’t? Why would suppliers foolishly leak out production yield rates for a top client?

    None of this stuff makes any sense or else Apple is trying to ruin itself.

  4. Because of the very high quality standards required by Apple and advanced technology involved in. The parts (screens) and construction techniques (stir-something or other welding on the iMac cases), higher failure rates are to be expected. But 40% or higher seems excessive. Probably have to refine manufacturing methoods and practices to reduce fail rates and improve supply rates.

  5. how’s that full-bore outsourcing going again? If Apple wants to meet demand, it’s going to have to learn to do a much better job at sourcing or controlling its manufacturing. There have been WAY too many screw-ups limiting product offerability and sales in the last few years.

    As I stated before and was raked over the coals for suggesting: rushing all production to the lowest-cost Asian build shops is not a very robust business model. Apple would be further ahead to diversify its manufacturing across the globe.

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