Touchscreen Production Issues Contributed To iPad Mini Pricing

Digitimes reports that one of the main reasons that Apple was unwilling or unable to release the iPad mini with the price below $329 is difficulties with production of touchscreens as Apple switches to new "GF2 Dito" technology. The report notes:

“The sources said the DITO film sensor is having mass production issues, which has been a big contributor to why the device is approximately 40-50% more expensive compared to other 7-inch tablets that have OGS or G/G structures.

The sources said that GF2 touch screen modules are only about roughly US$5 cheaper than G/G ones for the 9.7-inch iPad models”.

Back in August KGI Securities analyst Ming-Chi Kuo said that hurdles experienced by Apple in transition to the new touchscreen technology were one of the main reasons that prevented the company from releasing iPad mini earlier than October.

The report also notes that sources from Apple’s supply chain saw orders for the second-generation iPad extending to the first quarter of 2013. Last week one analyst speculated that Apple may discontinue the iPad 2 in favor of the iPad mini, but at the media event Apple made it clear that the iPad 2 is still an integral part of its iPad product line even though the production of the iPad 3 was discontinued.