New iPad Stocks Held Back By Retina Display Components

Apple fans can't wait to get their hands on the third generation iPad, but it seems they will have to. Despite the strong demand for the new iPad, Apple's supply chain can only deliver limited stocks.

Retina Display, the big selling point of the new iPad, is the main reason for limited shipments. Apple's partners are gearing up to face the demand by adding new production lines.

The main supplier for the Retina Display is Samsung, but LG and Sharp also send small shipments of the high resolution panels to Foxconn's assembly lines.

Foxconn has its own problems, due to recent reports of appalling working conditions in its factories. Following FLA investigations, Foxconn is under pressure to improve.

The company needs to hire additional employees in order to reduce the working time within the legal timeframe and to maintain the production.

Once this problem is solved, Apple is expected to sell even more new iPads than the previous estimates were indicating.

Analyst Shaw Wu with Sterne Agee suggests that Apple already sold over 12 million units in this quarter and by the end of the year, 63 million new iPads will have owners. Gartner ups this number even more, suggesting that by the end of 2012, Apple could sell as much as 73 million iPads.

source: AppleInsider