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Apple may be squeezed by Retina Display shortage at 'iPad 3' launch

post #1 of 60
3/1/12 at 4:58am
Thread Starter 
It may take Apple more than a month to fully ramp up supply of its third-generation iPad, due to a rumored limited supply of high-definition Retina Displays, according to a new report.

Citing sources in Apple's supply chain, DigiTimes reported that an "insufficient supply of high resolution displays" could restrict Apple from providing sufficient iPad supply at launch. The so-called "iPad 3" is expected to be introduced at an Apple media event in San Francisco next Wednesday.

Retina Displays for the next iPad will reportedly be supplied by Sharp, LG Display and Samsung Electronics. But it was said that the "whole supply chain has failed to substantially ramp up" supply of the high-resolution screens.

"As a result, iPad 2 will remain the mainstream in shipments in the most part of the first quarter before shipments of the iPad 3 start gaining momentum in the second quarter," the report said.

The same publication has also claimed that Apple plans to introduce a new 8-gigabyte iPad 2 as an entry-level model at next week's event. It was said that the lower-capacity iPad 2 would be $349 and $399, and would be targeted to take away sales from devices like Amazon's $199 Kindle Fire.

Strangely, the DigiTimes report also reiterated its claims that the new iPad will come in 16- and 32-gigabyte versions, and made no mention of a 64-gigabyte iPad. That would be a change from the current iPad 2 lineup, which maxes out at 64 gigabytes.




The new third-generation iPad is expected to feature a QXGA Retina Display panel with a resolution of 2,048 by 1,536 pixels, amounting to 264 pixels per inch. That compares to the previous-generation iPad's 1,024-by-768 screen.

The new iPad is also expected to have 4G LTE connectivity for high-speed wireless data plans, along with improved cameras and a faster, custom ARM-based processor. In addition, the device is said to be slightly thicker than its predecessor, and there have been claims that the new iPad will feature Siri voice control like the iPhone 4S.

[ View article on AppleInsider ]
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post #2 of 60
3/1/12 at 5:09am
Quote:
Originally Posted by AppleInsider View Post

It may take Apple more than a month to fully ramp up supply of its third-generation iPad, due to a rumored limited supply of high-definition Retina Displays, according to a new report.

This should serve as further evidence of a price hike.
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post #3 of 60
3/1/12 at 5:10am
Sucks if true. Again, Apple's success/performance potential limited by the capabilities of others. I always thought a mass launch of such a screen would be akin to a small miracle, considering there's nothing yet like it out there even on a NICHE tablet, nevermind the most popular one in the world. I wasn't planning to lineup/pre-order, so hope I don't have to wait several months before purchase.
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post #4 of 60
3/1/12 at 5:17am
Misdirection!
"So at the end of the presentation, Steve came up to me and said: Is the iPhone worth criticizing? And I said: Make the screen five inches by eight inches, and you’ll rule the world."
– Alan Kay –
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"So at the end of the presentation, Steve came up to me and said: Is the iPhone worth criticizing? And I said: Make the screen five inches by eight inches, and you’ll rule the world."
– Alan Kay –
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post #5 of 60
3/1/12 at 5:18am
Quote:
Originally Posted by Slurpy View Post

Sucks if true. Again, Apple's success/performance potential limited by the capabilities of others.

This strikes me as a rather odd statement. Rather...

Quote:
Sucks if true. Again, Apple's success/performance potential limited by the capabilities of reality.

Fixed.
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post #6 of 60
3/1/12 at 5:20am
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

This should serve as further evidence of a price hike.

If there was a way to vote comments down, I'd vote yours down. And the article.

CAN WE PLEASE STOP QUOTING DIGITIMES AS IF THEY'RE A LEGITIMATE SOURCE!

I mean its the same damn thing every product launch. They rehash one or two points that we're all already aware of, then make up 5 more points that never had any basis in reality, just to stir the pot and get that ad revenue pumping. This site and others are guilty of aiding them in that fraudulent endeavor.

There will be no shortage. There will be the standard "delays" as Apple tries to keep up with demand. However, they've been ramping up for this release for months. There will be no "shortage".

And there absolutely will still be a 64 GB model. If this doesn't tell you DT is simply making things up without any sources, I don't know what will.

And as for price hike? LMAO. Nope.
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post #7 of 60
3/1/12 at 5:26am
Fear, uncertainty, doubt. Although in this case it will play into Apple's favor. People who have the money ready will start queuing early and in greater numbers, otherwise its a 2-3 week wait for the next gen hardware.
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post #8 of 60
3/1/12 at 5:34am
Quote:
Originally Posted by Dick Applebaum View Post

Misdirection!

I agree. IMO this is meant to feed coming rumors of a limited supply to be quickly gobbled up by a "crushing demand" for the newest iPad. If you see it for sale anywhere you better not hesitate at all, just grab it while you can.

The rumors that the build was underway started weeks ago. I personally believe Apple will have plenty of units available to them, tho the volume released to the channel may be controlled. It benefits Apple more for there to be an appearance of (not an actual) scarcity rather than there being ample stock at all Apple resellers and company stores. You're much more likely to buy today if you think you might not find it in stock later in the week. It also attracts the eBay resellers, who seem to scoop up a whole lot of new product just to put them up for resale.

melior diabolus quem scies

"No theatrics and no more personal attacks, just stick to the logic and tell me why I don't have any argument ~ Jragosta/2012

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melior diabolus quem scies

"No theatrics and no more personal attacks, just stick to the logic and tell me why I don't have any argument ~ Jragosta/2012

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post #9 of 60
3/1/12 at 5:37am
This just in: supplies of a new cutting edge technology may not be unlimited. Next up: Are kittens fluffy? Two experts will debate.
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post #10 of 60
3/1/12 at 5:42am
Got love FUD.

GET IT NOW! LIMITED SUPPLY! THERE WON'T BE ONE IN ... wait ... errr ... uh ... two weeks. That's cool. I can wait two weeks.

2011 13" Core i5 Macbook Pro | Intel 520 SSD | 8GB Corsair DDR3 1333 | OSX 10.7
iPhone 4S - AT&T

iPad 3 Wi-Fi

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2011 13" Core i5 Macbook Pro | Intel 520 SSD | 8GB Corsair DDR3 1333 | OSX 10.7
iPhone 4S - AT&T

iPad 3 Wi-Fi

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post #11 of 60
3/1/12 at 6:02am
Apple's new iPad3 will be powered by miniature unicorns genetically engineered in Apple's top secret labs.
or
Steve Jobs isn't really dead he is living on a commune on Mars with Elvis, Marilyn Monroe, and the Loch Ness Monster.

Look Ma, I'm a DigiTimes' reporter.

Why does anyone pay any attention to what these yahoos say? They are the tech equivalent of the checkout rags.
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post #12 of 60
3/1/12 at 6:07am
Brutus009, what do you think is reality and what's your basis for your prediction? Because I'm pretty sure no one knows the truth. We will all just have to wait and see
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post #13 of 60
3/1/12 at 6:13am
Quote:
Originally Posted by Dick Applebaum View Post

Misdirection!

Shhh!!! You don't tell people that DigiTimes is guessing, and AppleInsider re-reports it as rumor, then 70% of the people reading it take it as a secret fact. All the while nobody but Apple knows the truth.
"And just like that, everyone here realizes you're just another sweaty little Google licker with an axe to grind and no idea what he's talking about." --addabox
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"And just like that, everyone here realizes you're just another sweaty little Google licker with an axe to grind and no idea what he's talking about." --addabox
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post #14 of 60
3/1/12 at 6:13am
If they're smart they'll launch first only at high capacities at raised price. Let the early adopters with deep pockets pay the premium price to allow production to ramp. They can say they're only launching 64 or 128 gb with availability today and in two weeks the rest. That way no one is surprised and no one is upset.
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post #15 of 60
3/1/12 at 6:16am
Quote:
Originally Posted by AppleInsider View Post


The same publication has also claimed that Apple plans to introduce a new 8-gigabyte iPad 2 as an entry-level model at next week's event. It was said that the lower-capacity iPad 2 would be $349 and $399, and would be targeted to take away sales from devices like Amazon's $199 Kindle Fire.

We might want to revisit the strategy that Apple used when it differentiated the iPod products. Did they raise the price on the new design or just create newer lower-cost entry products (iPod mini, nano, etc)?

I seem to remember that the kept the top pricepoint constant and filled in the lower price points. They have been doing the same with the iPhone (iPhone 4 at $99, iPhone 3GS at $0).

I am hoping that the new iPad 3 stays at $499, and the iPad 2 drops to $399 with an 8GB $349 version.

That would really put tremendous pressure on the other tablet manufacturers (including the Kindle Fire).

Assuming that a 8" iPad shows up for Christmas at $299 (8GB), then Apple wins across the board.
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post #16 of 60
3/1/12 at 6:17am
Quote:
Originally Posted by pmz View Post

There will be no shortage. There will be the standard "delays" as Apple tries to keep up with demand. However, they've been ramping up for this release for months. There will be no "shortage".

It's not a shortage. We just can't meet demand.

There was a shortage of the iPad and of the iPad 2. They changed strategies when they came out with the iPad 2 to try and mitigate the problems they had with the iPad (1). By putting it for preorder the first time, it did experience tremendous shortages in the brick&mortar stores. Nearly all the initial supply was gobbled up by online buyers, and people had a very hard time buying it in real life, many places. Personally, I knew to order it online as soon as it was available. Lots of people didn't, though. They waited for it to hit stores. Then they waited, and waited. I'll try not to pretend it was worse than it was, if you agree not to pretend it was better.

Keep in mind that no one but Apple and whoever makes these retina displays has any idea what quantities they're going to be able to make them in.
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post #17 of 60
3/1/12 at 6:17am
There wasn't an issue with Retina Displays for iPhone 4
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post #18 of 60
3/1/12 at 6:22am
Quote:
Originally Posted by cwoloszynski View Post

We might want to revisit the strategy that Apple used when it differentiated the iPod products. Did they raise the price on the new design or just create newer lower-cost entry products (iPod mini, nano, etc)?

I seem to remember that the kept the top pricepoint constant and filled in the lower price points. They have been doing the same with the iPhone (iPhone 4 at $99, iPhone 3GS at $0).

I am hoping that the new iPad 3 stays at $499, and the iPad 2 drops to $399 with an 8GB $349 version.

That would really put tremendous pressure on the other tablet manufacturers (including the Kindle Fire).

Assuming that a 8" iPad shows up for Christmas at $299 (8GB), then Apple wins across the board.

Oh my lord! You stepped in it now.

I hope that you are prepared for the flood of replies decrying anyone who states that the iPad has any competition or needs to do anything to address even the possibility of future competition.

I mean why in the world should a company be proactive when they should obviously be reactionary. After all, Apple can simply address the problem of competitors after they arrive and start to steal sales from Apple. That is sound business practice, after all, and anyone who doesn't know this is an idiot and shouldn't comment on things that they don't understand. (Please not sarcasm.)
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post #19 of 60
3/1/12 at 6:37am
Quote:
Originally Posted by pmz View Post

If there was a way to vote comments down, I'd vote yours down. And the article.

CAN WE PLEASE STOP QUOTING DIGITIMES AS IF THEY'RE A LEGITIMATE SOURCE!

I mean its the same damn thing every product launch. They rehash one or two points that we're all already aware of, then make up 5 more points that never had any basis in reality, just to stir the pot and get that ad revenue pumping. This site and others are guilty of aiding them in that fraudulent endeavor.

There will be no shortage. There will be the standard "delays" as Apple tries to keep up with demand. However, they've been ramping up for this release for months. There will be no "shortage".

And there absolutely will still be a 64 GB model. If this doesn't tell you DT is simply making things up without any sources, I don't know what will.

And as for price hike? LMAO. Nope.

You are correct that quoting Digitimes as a source for anything is ridiculous. In fact, one could argue that the most accurate prediction would be to say the exact opposite of Digitimes.

That said, I disagree with your conclusion that there will be no shortage. What's the difference between a 'delay' and a 'shortage'? There isn't one. Like any hot new product from Apple, demand will exceed supply at first. Supply will be limited by a large number of factors - availability of components, manufacturing experience, amount of time available to stockpile product before the launch, need to fill the pipelines, etc. So there will be a shortage at first - I just don't think anyone knows how much of that will be due to displays.
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post #20 of 60
3/1/12 at 6:43am
So a rumor of shortage about a rumor of a component. Nothing else to talk about??
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post #21 of 60
3/1/12 at 6:54am
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

This should serve as further evidence of a price hike.

Why would you think that? I would think they have agreed a contract price on the displays Apple has ordered, and not that Apple was buying the displays on the open market. Did I miss something?

We've always been at war with Eastasia...

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We've always been at war with Eastasia...

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post #22 of 60
3/1/12 at 7:14am
Quote:
Originally Posted by pmz View Post

If there was a way to vote comments down, I'd vote yours down. And the article.

CAN WE PLEASE STOP QUOTING DIGITIMES AS IF THEY'RE A LEGITIMATE SOURCE!

I mean its the same damn thing every product launch..

Yep. They always do the whole limited supply, parts issues, the two models this year.

over and over they are proven false

I can tell you that yes Apple will have a supply issue on this unit because it will be a hella popular. Hopefully they already have systems in place to avoid lines every day for the next 2 months etc. But you can bet that if they were having crazy issues getting a decent amount of launch stock they simply wouldn't launch.
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post #23 of 60
3/1/12 at 7:15am
Quote:
Originally Posted by mknopp View Post

Look Ma, I'm a DigiTimes' reporter.

Why does anyone pay any attention to what these yahoos say?

don't insult Yahoo like that
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post #24 of 60
3/1/12 at 7:17am
Quote:
Originally Posted by Slurpy View Post

Sucks if true. Again, Apple's success/performance potential limited by the capabilities of others. I always thought a mass launch of such a screen would be akin to a small miracle, considering there's nothing yet like it out there even on a NICHE tablet, nevermind the most popular one in the world. I wasn't planning to lineup/pre-order, so hope I don't have to wait several months before purchase.

I am not really into the whole 'retina' thing so i ask what is the benefit to the average user of this display? output to larger screen? the ipad 2 already had a wonderful image am i going to see this and go 'holy sh*t'' this is so much better than the ipad 2?
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post #25 of 60
3/1/12 at 7:17am
Not sure how this is a surprise. There have been several reports months ago talking about limited screens because of the failure rate on these displays.

Now, to add a twist and of course conspiracy, maybe these Korean companies are getting tired of being smashed by Apple in the phone / tablet market, realized all they have to do is "drag" their feet and iPad 3 sales slow significantly. Nothing they could do about the iPad 1/2 because of contracts but I can only assume these are new contracts and if production rejects are high, they are high, nothing they can do.

I also thought I read Samsung was releasing a tablet with a high res screen as well, I can only assume it will be the same display or very similar, maybe they are reserving production for their own tablets.

There are tons of "scenarios" one could ponder.
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post #26 of 60
3/1/12 at 7:18am
Quote:
Originally Posted by pmz View Post

If there was a way to vote comments down, I'd vote yours down. And the article.

CAN WE PLEASE STOP QUOTING DIGITIMES AS IF THEY'RE A LEGITIMATE SOURCE!

I mean its the same damn thing every product launch. They rehash one or two points that we're all already aware of, then make up 5 more points that never had any basis in reality, just to stir the pot and get that ad revenue pumping. This site and others are guilty of aiding them in that fraudulent endeavor.

There will be no shortage. There will be the standard "delays" as Apple tries to keep up with demand. However, they've been ramping up for this release for months. There will be no "shortage".

And there absolutely will still be a 64 GB model. If this doesn't tell you DT is simply making things up without any sources, I don't know what will.

And as for price hike? LMAO. Nope.

I saw a report sometime last year which characterized them, as well as some other sites that do that sort of reporting. They were correct a bit over 50% of the time

As for the 64GB, I would imagine its a typo. I really can't see Apple not including a 64GB version. I was hoping for a 128 model now that I'm been using video editing, CAD, and PS, which was recently just out.

It's not likely, but perhaps Apple has relented, and we'll get a memory card capability.
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post #27 of 60
3/1/12 at 7:21am
Quote:
Originally Posted by screamingfist View Post

I am not really into the whole 'retina' thing so i ask what is the benefit to the average user of this display? output to larger screen? the ipad 2 already had a wonderful image am i going to see this and go 'holy sh*t'' this is so much better than the ipad 2?

Type will be much better in smaller sizes. It's very noticeable.
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post #28 of 60
3/1/12 at 7:21am
Quote:
Originally Posted by screamingfist View Post

...am i going to see this and go 'holy sh*t'' this is so much better than the ipad 2?

<yoda [not amphetamine cgi version]>
You will... You will...
</yoda>
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post #29 of 60
3/1/12 at 7:24am
Quote:
Originally Posted by melgross View Post

I saw a report sometime last year which characterized them, as well as some other sites that do that sort of reporting. They were correct a bit over 50% of the time

As for the 64GB, I would imagine its a typo. I really can't see Apple not including a 64GB version. I was hoping for a 128 model now that I'm been using video editing, CAD, and PS, which was recently just out.

It's not likely, but perhaps Apple has relented, and we'll get a memory card capability.

Isn't the lack of SD card capability one of the reasons some enterprises prefer the iPad/iPhone over, say, competing Android devices with removable storage?

melior diabolus quem scies

"No theatrics and no more personal attacks, just stick to the logic and tell me why I don't have any argument ~ Jragosta/2012

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melior diabolus quem scies

"No theatrics and no more personal attacks, just stick to the logic and tell me why I don't have any argument ~ Jragosta/2012

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post #30 of 60
3/1/12 at 7:26am
Quote:
Originally Posted by charlituna View Post

Yep. They always do the whole limited supply, parts issues, the two models this year.

over and over they are proven false

I can tell you that yes Apple will have a supply issue on this unit because it will be a hella popular. Hopefully they already have systems in place to avoid lines every day for the next 2 months etc. But you can bet that if they were having crazy issues getting a decent amount of launch stock they simply wouldn't launch.

Indeed, there will always be a shortage of the latest iPad and iPhone models. Particularly outside the 1st and 2nd tier launch countries... If you are in the 1st and 2nd tier launch countries, then [ned stark meme with "Brace Yourselves, The Scalpers Are Coming]

The question is whether there is a shortage of components Apple expected more of... Which, I suppose, nobody knows.

In any case if I can hold out for 2 weeks without ordering online then that will be a great victory, I've got hella lot of work to do this month!
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post #31 of 60
3/1/12 at 7:28am
Quote:
Originally Posted by Gatorguy View Post

Isn't the lack of SD card capability one of the reasons some enterprises prefer the iPad/iPhone over, say, competing Android devices with removable storage?

Not really, lots more reasons why Android tablets just ain't cutting it... yet? BTW how many tablets have ICS?

I've finally got decent broadband (15mbps down)... And I tell you what, this has taken my iPad up a notch... Bam! Somehow AtomicWebBrowser on iPad is also faster now compared to Firefox on Mac. I know, not an oranges-to-oranges comparison, but that's also my point. For non-work-related web surfing here on my couch, it's pretty bl**dy sweet. Time to admit from March 7 I'll be bashing the Australian Apple Store refresh button. ~sigh~ here we go again. Twice as magical. Hopefully with the strength of AUD now iPad 3 will come in at same prices as iPad 2 now.
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post #32 of 60
3/1/12 at 7:29am
Quote:
Originally Posted by diplication View Post

Why would you think that? I would think they have agreed a contract price on the displays Apple has ordered, and not that Apple was buying the displays on the open market. Did I miss something?

Because a higher price generally equals fewer sales. If the sales will be fewer due to shortages, Apple may as well capture more profit on each sale, given that many people do not care so much about the price.

Look at it this way: If you can produce as many widgets as needed, you will price them to make maximum profit on as many sales as possible. But if you can only make a limited number of the widgets, it is likely that you could raise the price and thereby maximize profits on the lower volume, because there is a market segment that will pay extra.

Diamonds and gold, for example, sell for high prices die to scarcity. It diamonds and gold were available in unlimited supplies, then the price would fall.
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post #33 of 60
3/1/12 at 7:34am
Quote:
Originally Posted by melgross View Post


It's not likely, but perhaps Apple has relented, and we'll get a memory card capability.

Why would Apple allow that?

If they can sell an extra 32 gigs of memory for $100, why would they forego the $100 and allow its customers to insert a $30 SD card?

Lots and lots of people would see the value in getting memory for $1/gig instead of paying Apple $3/gig.

Apple can get $3/gig for extra memory. That is too profitable for them to allow customers to buy memory from the normal sources.
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post #34 of 60
3/1/12 at 7:36am
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

Because a higher price generally equals fewer sales. If the sales will be fewer due to shortages, Apple may as well capture more profit on each sale, given that many people do not care so much about the price.

Look at it this way: If you can produce as many widgets as needed, you will price them to make maximum profit on as many sales as possible. But if you can only make a limited number of the widgets, it is likely that you could raise the price and thereby maximize profits on the lower volume, because there is a market segment that will pay extra.

Diamonds and gold, for example, sell for high prices die to scarcity. It diamonds and gold were available in unlimited supplies, then the price would fall.

I would expect that Apple will price it appropriately for long-term (not supply-limited) sales. They have no history, that I am aware of, of starting with high prices and then dropping them as availability improves.
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post #35 of 60
3/1/12 at 7:50am
Quote:
Originally Posted by sunilraman View Post

Not really, lots more reasons why Android tablets just ain't cutting it... yet?

Of course it isn't the only reason. We're all aware of others, whether real or imagined.

melior diabolus quem scies

"No theatrics and no more personal attacks, just stick to the logic and tell me why I don't have any argument ~ Jragosta/2012

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melior diabolus quem scies

"No theatrics and no more personal attacks, just stick to the logic and tell me why I don't have any argument ~ Jragosta/2012

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post #36 of 60
3/1/12 at 8:20am
Quote:
Originally Posted by cameronj View Post

If they're smart they'll launch first only at high capacities at raised price. Let the early adopters with deep pockets pay the premium price to allow production to ramp. They can say they're only launching 64 or 128 gb with availability today and in two weeks the rest. That way no one is surprised and no one is upset.


Nah...They want the long queues on TV day one.

Edit: I mean queues on day -7

Life is too short to drink bad coffee.

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Life is too short to drink bad coffee.

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post #37 of 60
3/1/12 at 8:28am
I want mine now!

Gimme! Gimme! Gimme!
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post #38 of 60
3/1/12 at 8:30am
Quote:
Originally Posted by muppetry View Post

I would expect that Apple will price it appropriately for long-term (not supply-limited) sales. They have no history, that I am aware of, of starting with high prices and then dropping them as availability improves.

I guess you slept through the original iPhone introduction.....
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post #39 of 60
3/1/12 at 8:52am
Quote:
Originally Posted by muppetry View Post

I would expect that Apple will price it appropriately for long-term (not supply-limited) sales. They have no history, that I am aware of, of starting with high prices and then dropping them as availability improves.

Is there any good reason for Apple to give up profits? If they can profit from something, they are likely to do it.
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post #40 of 60
3/1/12 at 9:02am
Quote:
Originally Posted by screamingfist View Post

I am not really into the whole 'retina' thing so i ask what is the benefit to the average user of this display? Output to larger screen? The ipad 2 already had a wonderful image. Am i going to see this and go 'holy sh*t'' this is so much better than the ipad 2?

Yes you are. That's the whole point. Until you see it, you don't realize how crappy the pre 3 iPad displays are. I am earliest adopter of both iPads and I can tell you in no uncertain terms the current displays are crap. I read a lot of small text, and it blows on these old iPad displays compared to reading on my iPhone 4S. Night & Day believe it.

And this shortage rumor is akin to stating that the sun will rise in the east tomorrow morning. Duh.

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Oct 3.2GHz 08 MP, 32GB, 512SSD, 15TB HDs
2.6GHz 6GB 17"HD LED MBP, Sony 52XBR6 HDTV
EyeTV 500, Hybrid 2G, EyeTV 3 HDTV Recorder
64 ATT iPhone 5, 64 ATT iPad 4, 64 Touch3G, 16 Nano6G

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