Apple’s Samsung Feud May Lead To iPad Mini Shortages
The ongoing feud between Apple, Inc. and Samsung could lead to a shortage of iPad mini devices over the holiday shopping season.
NPD DisplaySearch on Tuesday told CNET that Apple is finding it difficult to source component parts from outside vendors. Apple recently decided to stop its dealings with component supplier Samsung.
With Samsung now out of the picture, Apple is forced to rely on LG Display and AUO for many of its iPad mini components.
According to the CNET report:
“The problem is that AUO is a new supplier, and they’re not able to get to the volumes that Apple needs. So, essentially, there’s just one supplier.”
LG has managed to ramp up production, moving from 300,000 iPad mini panels shipped in September to 1 million panels expected by the end of October. In anticipation of the iPad Minis upcoming release, LG is expected to ship 3 million iPad mini panels by December.
It’s still unclear if customers will be willing to spend $329 for a Wi-Fi only tablet when Android competitors offer similar devices with GPS included for $199. If demand is high, Apple could find itself with massive delays.
Many analysts on Wednesday threw their support behind the iPad Mini, claiming that the lower price, when compared to the original iPad line, will be seen as an attractive offer for many buyers.
Samsung, in the meantime, is expected to completely pull out of its display contract with Apple by the end of 2013, instead focusing its efforts on Android manufacturers and other supply chain opportunities.
With Apple suing everyone who even looks at an iOS based product, it will be interesting to see how long its partnership with LG lasts.