Apple Pulls Back on iPad 2 Display Orders as iPad 3 Production Begins to Ramp Up

Digitimes reports that Apple has reduced its fourth-quarter orders for iPad 2 display panels. That might mean that Apple has already started preparing for the launch of the iPad 3 early next year. The second reason might be the reduction of customers’ interest in the device.  Moreover, Apple stockpiled components for an extra 4-5 million iPad 2 units, so that allows it to reduce its orders for the fourth quarter.

Sales of iPads at the end market totaled 11.12 million units in the third quarter of 2011, according to data released by Apple. However, inventories of parts and components prepared by the makers in the supply chain for the production of iPad 2 in the quarter are sufficient for the production of 15-16 million iPads, leaving a stockpile of 4-5 million units of iPad 2 in the supply chain, the sources noted.

Digitimes also notes that the reason for stockpiling of iPad 2 components may be preparation for the iPad 3 launch set for the beginning of 2012, suggesting that  suppliers of both display and touch panels for the iPad 3 have either already begun or will soon begin shipments to Apple.

While Apple is adjusting panel inventory for iPad 2, Samsung and Sharp already began shipping panels for the next-generation iPads to Apple in October, and Taiwan-based touch panel makers TPK Holding and Wintek will begin to ship touch panels for the new iPads to the supply chain in November-December, the sources noted.