Sam Oliver
Sharp is said to have "nearly halted" production of 9.7-inch panels for Apple's full-size iPad — a change made as sales are predicted to shift to the 7.9-inch iPad mini.
Two sources signaled to Reuters that production of 9.7-inch LCD displays has "fallen to a minimal level" at its Kameyama plant in Japan. Friday's report indicated that a slowdown began at the end of 2012.
"The sources didn't say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini," the report said, "and were unable to characterize Apple's overall tablet sales."
While the sources reportedly characterized the changes as inventory management by Apple, some market watchers believe the new iPad mini may have had a significant effect on sales of the full-size iPad. Data from NPD DisplaySearch published in December indicated the iPad mini is already on pace to outsell the iPad.
A breakdown of iPad versus iPad mini sales for the holiday quarter is not likely forthcoming, however, as Apple does not detail sales of individual products. The company is set to report its quarterly earnings next Wednesday, a call that has been declared the company's most important in a decade.
The report of iPad panel orders being slashed at Sharp comes as Apple has already been hit with rumors that the company has drastically cut iPhone 5 component orders in response to weakening demand. However, many analysts have stood by Apple, dismissing the apparent order reductions as typical supply chain management and not a sign of consumer demand.
A drawdown in component orders for the iPad could also be a sign that Apple is preparing to launch a new model. One report from earlier this month claimed Apple plans to debut a fifth-generation iPad in March.
Analyst Ming-Chi Kuo of KGI Securities, who has a strong track record in predicting Apple's next moves, said this week that he has been told Apple's next iPad will be "significantly lighter and slimmer." The so-called "iPad 5" is expected to have a narrow border design, similar to the one found on the iPad mini.
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111 Comments
The new ipad should be awesome! I love the big screen. A thinner lighter New iPad will decimate WinPC sales
There are several possible explanations. First, I do think the iPad mini is very popular. It was priced right to be a holiday gift. It may also be the right size for the long term, being bigger and more readable than the silly "phablets" but smaller and more portable than the 9.7" and even bigger Android tablets, which will probably eventually see more competition from Windows 8. Second, it could mean a 5th generation is on its way, with a more substantial redesign to address the size and weight. Third, the holiday season has passed.
I seriously hope that the ones doing this are put in jail. This is criminal.
Are they winding down production of the old iPad to flush out stock before a new one is unveiled in March? I mean the screen is one component, which they probably have stock of, which needs to be flushed out into assembled iPads, which they probably also have stock of, which need to be flushed out to stores, which also have their own stock.
On a semi-unrelated note, I hope they come out with a bigger iPad. I only use my first gen iPad for email, web-browsing, music and videos so Retina+faster processor really isn't enough to justify an upgrade, especially since 64 GB capacity is a must. A 13" screen on the other hand...
I just can't see Apple not addressing the larger touch screen device market now that all these Windows 8 devices are coming out. A frankenstein MacBook hybrid won't happen, so that really only leaves a larger iPad. Timing is perfect for Apple to show the world how to "do it right", plus now as Android tablets gain credibility and market share it gives Apple a new high end.
Unless iOS 7 really ups the anti, I'll be switching to WP 8 I reckon... I'm not surprised demand has fallen for iPhone 5.