LG Display has reportedly reduced the capacity utilization rate at its P9 factory to roughly 60% as a result of a large reduction of 9.7-inch iPad panel orders from Apple, according to industry sources.
Apple has reportedly decided to cut shipments for its 9.7-inch iPad products in the first quarter to as low as six million units, down from Apple's originally estimated 12-15 million units, due to increasing popularity among consumers for the iPad mini, said the sources.
The cut has brought a drop to the P9 factory's to capacity utilization rate to 60% and it may drop even lower to 50% throughout the first quarter, added the sources. LG Display's average capacity utilization rate is also likely to remain at about 80% throughout the time period as a result, noted the sources.
However, the sources did say LG Display is bumping up production of 32-inch TV panels at the factory to increase the utilization rate at the P9 factory but is likely to face constraints in selling the products due to increased panel supply competition from China-based panel makers.
LG Display is expected to see a decrease in panel orders for Apple's 9.7-inch iPad products during 1Q13
Photo: Michael Lee, Digitimes, January 2013
Article translated by Alex Wolfgram
