iPad mini Festival

The iPad mini from Apple is in such hot demand and its parts are in such short supply that even if you want one this holiday season you may not get it.

Apple supply chain to benefit from new Apple products in 1Q13

Siu Han, Taipei; Alex Wolfgram, DIGITIMES 

Parts providers in Apple's supply chain will reportedly have to wait until the first quarter of 2013 to see their revenues bump up as the result of Apple's newly released iPad mini and 21.5- and 27-inch iMac due to mass production issues with the products, according to industry sources.

Mass production of panels used in the iPad mini has reportedly suffered low yield rates, and backlight module providers have also had a shortage of supplies, which is affecting the amount of iPad minis that can be shipped in 2012, said the sources.

The sources said AU Optronics (AUO) and LG Display (LGD) provide panels for the iPad mini and that AUO is having mass production issues. This has caused the overall shipment proportion of AUO panels used in the iPad mini to drop to about 22%, down from AUO's original 40% target, added the sources.

Apple is said to have set a ten million shipment target for the iPad mini for the fourth quarter of 2012, but might only reach six million during the period largely as a result of production delays at AUO, said the sources.

Additionally, the sources said new iMac models use panels sourced only from LGD. The company has had to develop a new production process for mass producing the iMac panels and has limited capacity, which is delaying shipments.

Apple is expected to reach its shipment targets for both the iPad mini and 21.5- and 27-inch iMacs during the first quarter of 2013, as parts providers in its supply chain are expected to increase their yields by then, added the sources.