'iPad Mini' Launch Supplies Reportedly Challenged by Component Yield Issues

[MacRumors]

In the lead-up to major Apple product launches, there are almost inevitably reports of production problems that result in the company having lower stocks on hand than it initially hoped for, sometimes leading to extended shortages as the company's supply chain works to catch up to demand. The iPhone 5 was no different, with yield issues on the new in-cell displays used in the device reportedly being the bottleneck that has limited availability.

With The Wall Street Journal now reporting that mass production of the "iPad mini" has begun, reports are once again suggesting that Apple's launch supplies may be on the low side due to issues with several components.

One such report comes from Topeka Capital Markets analyst Brian White, who is currently in Taiwan meeting with a number of contacts in the component supply chains for Apple and other companies. White's contacts believe that yield issues with several iPad mini components have been "frustrating", with supplies of the device likely to be constrained for the first month of availability heading into the holiday shopping season.

Similar to the iPhone 5, we sensed that suppliers have found the specs around Apple's (AAPL-$671.45: Buy) 7.85-inch "iPad Mini" to be a challenge and yields have been frustrating. In our view, this is the reason the "iPad Mini" is 4-6 weeks behind our original launch expectation that we discussed in June. Despite continued yield challenges, the supply chain feels the much anticipated iPad Mini is on track to reach acceptable volume levels for a launch over the next month. That said, we believe that supply constraints will initially hold back the full sales potential during the first month or so of the launch.

White believes that Apple may sell 5-7 million iPad minis through the end of the quarter, somewhat below more optimistic estimates from other analysts that have put the number closer to 10 million. As with the iPhone 5, product availability for the iPad mini may actually be the limiting factor for early sales, making it difficult to assess true consumer demand.

Claimed black iPad mini rear shell​

A pair of reports from Digitimes tell a similar story, with one article claiming that AU Optronics' production of the iPad mini display panels has been below expectations with just 400,000 panels shipped in the third quarter compared to a goal of two million for the manufacturer.

Apple is expected to ship 9-10 million units of the new tablet in the fourth quarter, but it remains to be seen whether AUO and LG Display - the other panel supplier for iPad Mini - can meet the target, the sources said.

A goal of five million panels for iPad Mini was set for the third quarter but later had to drop to one million due to low yield rates, with LG Display and AUO comprising 60% and AUO 40%, the sources said.

The second report from Digitimes indicates that chassis makers are also struggling with yield issues.

Along with the latest market rumors indicating that Apple is likely to unveil the much speculated iPad mini on October 17, sources in Apple's supply chain in Taiwan are also indicating that shipments of the iPad mini tablets are not smooth at the moment due to low yield rates at chassis makers.

Case makers Foxconn Electronics, Catcher Technology and Ri-Teng Computer Accessory are responsible for production of the iPad mini chassis, the sources indicated. Ri-Teng is an associate company of Pegatron.

The report claims that the iPad mini will be available in two body colors, native aluminum and black-anodized aluminum as seen with the iPhone 5, with the black version experiencing greater production issues due to the scratching vulnerability of the anodized chassis.

Article Link: 'iPad Mini' Launch Supplies Reportedly Challenged by Component Yield Issues

 

[Flood123]

When AREN'T there issues in the production process these days?

 

[gregwyattjr]

with the black version experiencing greater production issues due to the scratching vulnerability of the anodized chassis.

I guess Apple didn't care about the iPhone being susceptible to scratches...

 

[FuNGi]

Great. I can't wait to hear everyone complaining about the scratching of their ipad mini's.

 

[The Samurai]

Would of been happy if it was iMac production issues.... at least we would of known they are round the corner

 

[goobot]

I love the way the black looks, would look good next to my iPhone 5.

 

[nlkccom]

Every Apple product had some 'issues' at production that contributes to 'low stock' at launch, so everyone go line up if they want to get their hands on one. Sure, sure... Apple, please be more creative next time. Getting tired of these 'rumors'.

 

[newyorksole]

Same story for every product launch......

 

[Steveo13]

So is iPad mini actually going to happen??

 

[Thunderhawks]

Great. I can't wait to hear everyone complaining about the scratching of their ipad mini's.

Don't get that.

This Klutz has his iPhone and iPad in a case.

Case closed!

 

[TOOFY]

I really cannot imagine this being even in production. I doubt Apple would create another iPad that would become somewhat of a fragmented iOS ecosystem.

 

[Swordylove]

Oooooo!! Aaaaaaa!!! Can't get enough of iPad Mini news/rumors/leaks. Me wants more!

 

[davidgnomo]

would of been happy if it was imac production issues.... At least we would of known they are round the corner :d

that !!! So much that !!!

 

[Technarchy]

I'm still skeptical about this iPad mini affair

 

[gus127]

I hope they don't release a new new ipad. I just but a new ipad. I will shoot my self if they do.

 

[ValSalva]

Anyone else find this report hard to believe? Is there any really new technology in the rumored iPad mini? Most of the parts are probably off the shelf. Seems like a ruse to get people to preorder on day 1...

 

[ValO]

yields?

This would be good news, actually.
If there are yield issues with the lcd panels, this could mean they are retina screens.
I can' t see them having trouble with a 1024x768 panel based on iphone 3gs panels.
It would indicate apple will use newer, more advanced parts for the ipad mini.
Instead of older hardware, based on ipad2.

 

[likemyorbs]

I hope they don't release a new new ipad. I just but a new ipad. I will shoot my self if they do.

Hope you have your gun ready then.

 

[goinskiing]

Love my Nexus 7, love the hardware and runs great, except for the whole environment/OS issues and lack of great software. Jelly Bean is actually quite good to be honest, but at the end of the day I find myself enjoy using iOS much more. So I will definitely ditch the Nexus 7 (or keep it actually if the iPad Mini price is right). Either way, I will be getting and iPad Mini.

 

[TheHeadFL]

This would be good news, actually.
If there are yield issues with the lcd panels, this could mean they are retina screens.
I can' t see them having trouble with a 1024x768 panel based on iphone 3gs panels.
It would indicate apple will use newer, more advanced parts for the ipad mini.
Instead of older hardware, based on ipad2.

My thoughts exactly.

I don't know what they could do other than 1024x768 or 2048x1536 (which does seem unlikely), but I don't see how they could be having screen yield issues with a regular 1024x768 display.

In-cell touch is not nearly as difficult to pull off when you're talking 163ppi versus 326ppi on the iPhone.

 

[mrtravel123]

Dear Mr. Cook,

Could you please leak a few details about the Mac Pro and iMac to assure us that WE computer users know that you haven't forgotten us?

And, does Apple even have a department related to these computers or has everyone at Apple been moved over to the iPad and iPhone departments?

 

[Jman13]

I hope they don't release a new new ipad. I just but a new ipad. I will shoot my self if they do.

You do realize that your new iPad will not cease to function, or get slower, when a newer iPad is released, right?

 

[Oohara]

I really cannot imagine this being even in production. I doubt Apple would create another iPad that would become somewhat of a fragmented iOS ecosystem.

If you wanna keep an iHipster out of your house, all you have to do is paint "fragmented ecosystem" on the door.

Seriously, that expression is getting beyond ridiculous. Why don't we all just get together and pray to the iOS gods that we'll never ever have to see a new line of Apple products again, especially not one that half the planet seems to be yearning for.

 

[Xenomorph]

I hope they don't release a new new ipad. I just but a new ipad. I will shoot my self if they do.

Why do people think this way?

I know people that got a "new" iPhone right before Apple released the next iPhone. They then were angry.

How DARE a company release a new product after their old one has been out several months!!!

 

[CapnJackGig]

So parts of a product that many Apple fanboys say doesnt exist are hard to make? LOL.