Apple Cutting Q1 iPad 2 Production By A Third

Another source has confirmed that Apple may be facing unexpected production issues with the iPad 2, issues that have cropped up during mass production of the device.

Taiwan based news website Digitimes says that Apple is facing some teething problems with the touch panel yield of the iPad 2, one which is reportedly thinner than the current one and based on a new technology; some adjustment in specifications have also been blamed for the delay.

Upstream component manufacturers have told Digitimes that the launch of the tablet is still predicted to go ahead in the second quarter of the year (Kara Swisher of ATD says next week) but production would still be significantly less than expected.

Apple's ODM partners are expected to produce around 400,000 units in the first quarter of 2011, down from 600,000 units. For the whole of 2011, analysts says that Apple may well sell around 30 million iPad tablets which means that the stock of 400,000 iPad 2 should last for a few days only.

Digitimes' sources told the news outlet that Apple only ordered around two million iPad tablets in January with an estimated 1.5 million tablets in the channel.

Three different companies - LG Display, Samsung Electronics and Chimei Innolux (CMI) - supply Apple with display component for the iPad 2 which means that there should be plenty of backup if needed.