Neil Hughes
Longtime Apple supplier AU Optronics will not be providing low-power LCD screens for the company's second-generation iPad mini due to production issues, according to a new report.
AUO's apparent inability to make the cut has industry insiders wondering whether Apple will turn to rival Samsung to meet the lost production, according to ETNews. Apple is already said to have struck a deal with LG for displays for its next-generation iPad mini.
LCDs for the current iPad mini have been supplied by AUO, LG Display and Sharp. Tuesday's report suggested that Sharp is also likely to remain a supplier for the next iPad mini, because it is the only supplier that can provide low-power oxide semiconductor LCD panels.
"Apple plans to apply oxide semiconductor LCD to iPad mini 2 despite the initial low production yield, because it gives the advantage of saving electricity," the report said. "Last year, AUO started to supply panels to Apple thanks to its price competitiveness. However, it could not convince Apple, as it failed to meet the supply deadlines or to develop an LCD with high penetration rate."
Apple may have felt comfortable in allegedly dropping AUO as an LCD supplier because of an improved relationship with Samsung Display. Tuesday's report claimed that Samsung Display has already developed an LCD sample for Apple, and the company may be able to secure a significant number of orders.
The details align with a rumor from last month, which claimed that Samsung would be the key supplier of 7.9-inch displays for Apple's next iPad mini. There has been considerable confusion, however, as to whether those screens will be high-resolution Retina displays. Tuesday's report did not offer any indication either way.
Samsung and Apple are currently engaged in a series of lawsuits in which each has accused the other of patent infringement. But in spite of those legal battles, relations between Apple and Samsung Display are alleged to have improved, and it's expected that Samsung will remain a supplier of displays for Apple's devices for the foreseeable future.
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20 Comments
Apple margin will improve
For God's sake Apple, invest more in the display arena. It becomes a crisis every time you launch a product. The display is as important as the microprocessor
For God's sake Apple, invest more in the display arena. It becomes a crisis every time you launch a product. The display is as important as the microprocessor
A rumored crisis shouldn't mean much to you unless you're heavily invested in them.
Looks like they want to move to IGZO retina mini's but yield is bad. imo if they cant make it they should do a small incremetal upgrade mini and offer the ipad mini 1 at $250 in time for Christmas. Or they could just price drop the mini to $299 or $250.
Apple is completly losing its grip of the high end market, its entire line up will be lagging in specs next fall. They must deliver or its going to get very ugly.
Whatever they do they need to avoid turning to Samsung for IGZO panels, they will be literatly paying Samsung to set up that tech on there production line and they will turn around and used the expertise to set up there own line.
A rumored crisis shouldn't mean much to you unless you're heavily invested in them.
He still has a point. For the ipad 3, Apple had to fall back to Samsung in the first months because it was the only one with a good yield and good quality. Its like Samsung is the only company capable of mass producing high end panels.