Apple Abandons AMOLED for iPad because of limited supply

New report published by Taiwanese industry publication DigiTimes reveals that Apple will not use AMOLED displays in its next-gen iPad because of insufficient supplies.

Currently the component makers in China and Taiwan attempt to increase their production, but it is still not enough for Apple.

"With backlight unit (BLU) makers set to be suppliers for the second generation of iPad, AMOLED will still be unable to enter Apple's supply chain. Panel makers have noted that a major reason for Apple to overlook AMOLED for iPads is insufficient supplies."

Samsung Mobile Display, which is a company in Korea, currently produces small AMOLED panels for Google Nexus S, Samsung Galaxy S and other phones from HTC and Nokia, but its capacity is reportedly not enough to meet the demand for this handsets.

"Moreover, the current AMOLED technology is not suitable for volume production of 7- to 11-inch tablet PC panels, and the mass production cost will not be able to compete with TFT-LCD panels."

DigiTimes reminded that Apple was looking into AMOLED display for its next-gen iPhone but eventually abandoned this idea as such technology is less suitable for displaying text and has few issues. Earlier it was reported that Apple found an LCD backlight supplier for its next-gen iPad, which will presumably debut in the first quarter of the next year.

Rumors about using AMOLED displays in Apple's products are months old and come mainly from DigiTimes. It is hard to say whether this source is reliable enough, but in November 2009 the publication announced that first Apple's iPad would have an OLED display and the price of $2,000.