Apple has been reportedly controlling iPad 2 panel inventories, which might affect iPad 2 panel shipments for suppliers including Samsung Electronics, LG Display and Chimei Innolux (CMI) in the fourth quarter of 2011, according to industry sources.
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.
Due to inventory adjustments at Apple, LG Display saw its shipments of 9.7-inch panels to Apple decline from three million units in September to 2.5 million units in October. Samsung managed to keep its shipments of 9.7-inch panels flat at two million units in October, while CMI slashed its shipments from 700,000 units to 350,000 units during the same month, said the sources.
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.
Article translated by Steve Shen
