According to Taiwan based sources in the supply chain, AU Optronics is expected to ship just 2.5 to 2.8 million panels for the Apple iPad mini
during the current quarter. The company appears to be pulling back
from production of the display for the original 7.9 inch slate while waiting to hear from Apple if it will be among those producing panels for the next iteration of the smaller Apple tablet. Last quarter, AUO had shipped 4 million panels for the device.
Apple is expected to deliver 10 million units of the Apple iPad mini in the second quarter, a 20% to 30% decline sequentially. The blame for the drop off in shipments is being placed on the time of the year as consumers typically keep their wallets and purses closed
during the April to June period. While AUO's production doesn't account for all of the iPad mini tablets expected to be transported this quarter, the remaining 7 million panels are said to be coming from LG Display.
AUO will face a further drop in panels for the device in the third quarter as Apple is expected to release the next-generation Apple iPad mini late in Q3 or in the following quarter. The supply chain sources say that LG Display and Sharp have already been selected by Apple to supply them with the necessary panels for the Apple iPad mini 2. AUO has submitted panels to Apple for the slate and hopes to soon receive certification from the Cupertino based manufacturer.