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Low Touchscreen Yields Reportedly Contributing to iPad Mini Pricing

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macrumors bot
Original poster
Apr 12, 2001
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Digitimes reports that one of the primary reasons that Apple was unable or unwilling to launch the iPad mini at a price below $329 is ongoing difficulties with touchscreen production as Apple transitions to new "GF2 Dito" technology.
The sources said the DITO film sensor is having mass production issues, which has been a big contributor to why the device is approximately 40-50% more expensive compared to other 7-inch tablets that have OGS or G/G structures.

The sources said that GF2 touch screen modules are only about roughly US$5 cheaper than G/G ones for the 9.7-inch iPad models.

Apple's transition to the new touch structure was mentioned by KGI Securities analyst Ming-Chi Kuo back in late August, with Kuo noting that hurdles experienced in that transition were one of the primary reasons that prevented Apple from launching iPad mini earlier than it did.

Today's report also notes that supply chain sources are continuing to see orders for the iPad 2 extending as far as the first quarter of next year, suggesting that Apple will indeed keep that model available for some time. One analyst had speculated last week that Apple might drop the iPad 2 in favor of the iPad mini in order to maintain a streamline product lineup, but at its media event this week the company was clear that the iPad 2 at $399 Wi-Fi/$529 cellular remains an integral part of its iPad portfolio even as the third-generation iPad has been discontinued.

Article Link: Low Touchscreen Yields Reportedly Contributing to iPad Mini Pricing
 

nfl46

macrumors 604
Oct 5, 2008
7,299
5,621
The iPad Mini is looking more and more appealing. Damn you, Apple. Somehow, someway, I always say I'm not going to get it, then I get one. :mad:
 
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nagromme

macrumors G5
May 2, 2002
12,546
1,196
Specs rise, prices fall, yields improve... time solves a lot. (Digitimes? Take with salt.)

Meanwhile, skip a meal out for two and you'll recover the $30 and be able to own an iPad Mini!

How do the two technologies compare?

Wondering the same. Thinner? More accurate color?
 
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ivladster

macrumors 6502
Jun 29, 2007
479
9
Washington DC
pretty wild

I think it's amazing to be a company that cannot make enough of its product to sell to so many. It's rarely seen in any business. Apple is going through its honeymoon phase ... for the past 8 years.
 
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Medic311

macrumors 68000
Jul 30, 2011
1,658
56
I think it's amazing to be a company that cannot make enough of its product to sell to so many. It's rarely seen in any business. Apple is going through its honeymoon phase ... for the past 8 years.

i wouldn't go back as far as 8 years.

the iPod helped save Apple from the grave, yes, but it was iOS that rocketed them up to the sky. their stock price history shows that
 
Comment

mitso

macrumors member
Jun 7, 2012
76
63
I call BS on this argument. Phil Schiller eluded to "quality". That's an easy way to justify the money grab.
 
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netdoc66

macrumors regular
Jun 27, 2007
175
91
New Jersey
Apple needs to eat that cost. Why dropp new technology when you haven't perfected the manufacturing process yet?
 
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theOtherGeoff

macrumors regular
Jun 18, 2010
189
0
Ming-Chi Kuo nails it.

You realize that Ming-Chi Kuo worked for DigiTimes prior to becoming a market analyst.

Having Digitimes be the 'confirmation' is like getting my mother to alibi me on the night of the murder ("I was playing cards with my mother, Officer, call her and ask")
 
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lilo777

macrumors 603
Nov 25, 2009
5,144
0
Low yields probably have more to do with switching to inferior supplier from Samsung than with new technology. Apple will lose a lot more than the $1 billion (that they will probably never get anyways) because of the way they treated Samsung.
 
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wackymacky

macrumors 68000
Sep 20, 2007
1,536
47
38°39′20″N 27°13′10″W
I guess retina was out of the question

Out of the question for 6 months so apple as usual can make money from early up takers before bumping up the specs.

(I, personally have been on of those from time to time and usually the pleasure of getting my hands on a product first out weighted that there was a new one out before I knew it)
 
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auero

macrumors 65816
Sep 15, 2006
1,368
96
The people crazy enough to want one NOW should eat the cost. Why should shareholders and customers willing to wait eat it?

Why? Look at how well Amazon's Kindle Fire sells and its hardly a profit. It's the content they sell that really makes them the money.

More iPads = more purchases via the appstore.
 
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jayducharme

macrumors 68040
Jun 22, 2006
3,910
3,959
The thick of it
I'm still puzzling over Apple's choice to discontinue the iPad 3 but keep the iPad 2 in production. I'm actually glad about the decision, since that leaves one Apple iDevice with the old-style dock connector. I'm sure that the iPad 2 is cheaper to produce, thus they can sell it for a slightly cheaper price. But if someone is prepared to spend $399 for an iPad, why wouldn't they pony up the extra $100 and get the newest model? It doesn't seem like a big enough difference in price.
 
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