Apple Chops Orders for iPad 2, Making Way for iPad 3?

The new favourite topic for Apple fans is the next generation iPad, as rumours and hints relating to new features and its possible release schedule are heating up on technology sites.

According to sources from the supply chain, it appears that the Cupertino-based company is moving into inventory control mode for the existing iPad prior to the arrival of the iPad 3 next year.

Analysts believe that the anticipation for the next-generation tablet, expected by some to be unveiled next March, will affect the demand for iPad 2 and Apple is readjusting its order levels from suppliers for that reason.

Based on Apple's financial reports, the company managed to sell 11.12 million iPad 2 units in the third quarter, and in the holiday season the plan was to manufacture 15 to 16 million units.

According to the information recently obtained by DigiTimes, component makers received notice to reduce production for iPad 2. Apple asked LG Display to decrease shipments from 3 million in September to 2.5 million in October while Chimei Innolux orders were cut in half, from 700,000 units in September to 350,000 in October.

Meanwhile, Apple and its partners are preparing intensively for the next generation iPad, with shipments of the iPad 3 displays reportedly having already started last month.