LG Display can't keep up with iPad orders
updated 11:10 pm EDT, Thu July 22, 2010
LG Display says iPad demand higher than supply
LG Display can't keep up with the demand for iPad screens, chief Kwon Young-soo said Thursday [sub. required]. He warned that Apple was ordering "more and more" of the tablet's LCDs to match demand but that LG can't keep up. The demand is such that LG may have to squeeze out others and won't be completely free to meet demand until spring of next year.
Apple's display demands are unique in the industry as it needs not only a unique, 9.7-inch LCD with a color-accurate IPS panel but a large, high-accuracy touchscreen and strong glass. It's believed Apple may have signed a deal with Samsung even before the iPad's April 3 release to offload some of the production burden to a second supplier.
LG has already taken steps to solve the issue and today committed $512 million to a 4.5th generation factory that will be targeted primarily at smaller displays, such as for the iPad and smartphones. At the same time, Kwon acknowledged a reverse issue with TVs, where overly optimistic predictions for large LCDs at the start of the year has led to an oversupply problem. LG may have to cut production in August to properly match demand.
Fresh-Faced Recruit
Joined: Nov 2008
So what if LG has to squeeze out others...
A bird in hand is worth two in a bush. There's definite demand for the iPad and there's no guarantee that other tablets will sell as well. LG should just concentrate on getting out as many panels for iPads as possible for as long as possible. Apple can afford to pay them, so LG should be making some good money to eventually increase production. I'm a little puzzled about these companies being upset when they're making money and not being stuck with unsold stock.