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Sharp production of 9.7-inch iPad screens 'nearly halted'

updated 09:31 am EST, Fri January 18, 2013

iPad mini may be diverting demand

Sharp has "nearly halted" production of 9.7-inch screens for the iPad, Reuters reports. Two industry sources for the newswire agency say that on the iPad line at Sharp's Kameyama plant, production has dropped to the minimum level needed to keep it moving, after a gradual slowdown that started at the end of 2012. Apple is reportedly managing its inventory.

Still unclear is why Apple and Sharp would have to scale back, assuming the report is true. The iPad mini is believed to be an important factor, since it may be pulling demand away from the standard iPad. At the same time, though, seasonal factors may also be at play. Demand for Apple products naturally dips after the holidays; combined with a shift towards the Mini, that may mean that only one or two suppliers are currently needed to make 9.7-inch screens.

Sharp may badly need Apple's business. The company has been suffering financially during the past year as it loses ground in the TV industry. Supplying displays to Apple is a relatively new endeavor, but could prove lucrative in the long run, especially if the company is indeed set to produce panels for an Apple HDTV.

Recently, the Wall Street Journal reported that Apple has also been cutting its iPhone 5 screen orders from Sharp, LG Display, and Japan Display, though that story was later discredited by The New York Times and other sources. There is some concern that unverified reports of slowdowns from Apple supplies could be part of an orchestrated attempt to manipulate the stock.



By Electronista Staff
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Comments

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Only five more days to disseminate damaging rumors and drop Apple's stock value before the quarterly report!

    Everybody come up with something fast!

    Next up: dropping iPad mini delivery times indicate that demand is weak! Insider sources report that Apple is about to cut back orders "substantially", according an obscure Taiwanese industry paper that has been wrong about every single thing the past three years.

  1. psdenno

    Fresh-Faced Recruit

    Joined: 05-06-03

    And in a related story UNNAMED sources indicate a significant drop in usage of Apple's Cloud services. Financial analysts ponder lowering Apple expectations.

    Anyone else want to take a fake shot at Apple?

  1. wlmwallace

    Fresh-Faced Recruit

    Joined: 02-06-12

    Stocks!

    Great time to buy then - just before they hit $650 not long after Apple announces record earnings and profit next Wednesday. These guys are doing us all a favor right now. I don't mind seeing stock I buy today going up 30% in less than a month!

  1. wrenchy

    Forum Regular

    Joined: 11-03-09

    Samsung must be happy they got out of that iScreen contract. Laughing they all must be.

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Or, maybe Sharp is having a hard time maintaining the quality in the components its supplying to Apple, causing a necessary steep reduction in output until the issue is resolved.
    It happens.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Daring Fireball Linked List: Suppressing AAPL

  1. blahblahbber

    Banned

    Joined: 02-01-05

    Get ready...

    See y'all at $470 this year!

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