iPad 2 display problems prompt Apple to cut orders from LG

Posted:
in iPad edited January 2014
LG Display has reportedly lost its status as the leading iPad 2 display maker after recent LCD shipments were said to have been plagued by quality issues, prompting Apple to turn instead to Samsung.



Citing industry sources, DigiTimes reported Wednesday that LG, the largest panel supplier for the iPad 2, recently had production of its LCD displays with in-plane switching disrupted by issues. As a result, Apple has allegedly been forced to suspend new orders from LG, turning instead to competitors Samsung and CMI.



"LGD's 9.7-inch panels for the iPad 2 reportedly failed to pass drop tests, during which their backlight units (BLUs) failed, the sources said, adding the panels' yield rates were unable to meet Apple's requirement," the report said.



LG is said to have shipped between 2.5 million and 2.6 million 9.7-inch panels in July, falling short of its goal of 4 million units per month. While LG has struggled, Samsung is said to have doubled its production goals, creating 2 million iPad 2 panels in July.



But Samsung is a primary competitor of Apple, and the two companies are engaged in a bitter legal battle, which sources said make the company a less-than-ideal choice for Apple. In addition, while CMI's affiliate status with manufacturer Foxconn makes it a favorable choice for Apple, its monthly goal of 9.7-inch iPad 2 displays is just 1 million.







In its last quarter, Apple shipped a record 9.25 million iPads, as the company apparently resolved supply constraints that hampered iPad 2 availability immediately after launch. In the previous quarter, the company sold 4.65 million iPads, as the company was plagued by what Chief Operating Officer Tim Cook called "the mother of all backlogs."



Given supply constraints faced by Apple in the past, the company may be eager to embrace LG once again if the apparent LCD quality issues can be addressed. Sources told DigiTimes that LG could regain its position as the leading panel supplier for the iPad 2, but only if problems with its displays can be fixed quickly.
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Comments

  • Reply 1 of 56
    nvidia2008nvidia2008 Posts: 9,262member
    Argh... Still gotta swap my iPad 2 because of the light bleed issue from the US launch batch thanks to LG. Soon... It's been hard to go a few days without at least looking at my precioussss
  • Reply 2 of 56
    cloudgazercloudgazer Posts: 2,161member
    This could have implications for the oft-rumoured HD iPad. The assumption has been that LG would be the main supplier for HiDPI panels, but this second big quality problem with the iPad-2 must be causing Apple concerns.



    Samsung's demonstrated HiDPI tablet panel is RGBW pentile, so unlikely to be adopted by Apple.
  • Reply 3 of 56
    matrix07matrix07 Posts: 1,993member
    LG panel on new MBA also plagued with flickering issue.
  • Reply 4 of 56
    Right. A day after bad news of injunction in Europe, a story is created to put samsung in a good light.



    Baloney.
  • Reply 5 of 56
    adonissmuadonissmu Posts: 1,772member
    LG needs to spend the money so they can do a better job. Quit trying to maximize profits by cutting back on quality.
  • Reply 6 of 56
    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.
  • Reply 7 of 56
    MacProMacPro Posts: 18,165member
    Quote:
    Originally Posted by ghostface147 View Post


    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.



    Maybe Samsung would be better off supplying Apple.
  • Reply 8 of 56
    cvaldes1831cvaldes1831 Posts: 1,832member
    Quote:
    Originally Posted by ghostface147 View Post


    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.



    Unfortunately for Samsung, they have no other customer with the same supply demands as Apple. Thus, they would lose revenue and take a hit by having excess manufacturing capacity. Those factories are a huge capital investment, you don't want them sitting around idle. Samsung would take major losses if their display business fell off a cliff.



    If Samsung said "eff you" to everyone who has rankled their hide, they'd have no one to do business with.



    But sure, they should listen to you, not me. Because the realities of international supply chain economics don't really exist in your dreamworld.
  • Reply 9 of 56
    Quote:
    Originally Posted by ghostface147 View Post


    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.



    You sound personally invested. Does someone in your family own Samsung? Was Samsung your ex who's runoff with another guy? WTF? Spite? It's business.
  • Reply 10 of 56
    Quote:
    Originally Posted by ghostface147 View Post


    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.



    Very well put. Because we all know Apple can do no wrong ...



    Samsung to Apple "Who loves ya baby?"
  • Reply 11 of 56
    Apple is sitting on a fortune in cash,why don't they build a factory to build their own panels...??
  • Reply 12 of 56
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 13 of 56
    gqbgqb Posts: 1,934member
    Quote:
    Originally Posted by ghostface147 View Post


    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.



    And now we know why you're not head of a large corporation.

    Its all business, dude. They know that.
  • Reply 14 of 56
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 15 of 56
    Damn, I didn't think people would take my comment seriously. Of course I know it's business.
  • Reply 16 of 56
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Scorpius_1 View Post


    Apple is sitting on a fortune in cash,why don't they build a factory to build their own panels...??



    Lots of reasons but you could start with the face that they have absolutely no experience at it.
  • Reply 17 of 56
    jukesjukes Posts: 213member
    Quote:
    Originally Posted by Scorpius_1 View Post


    Apple is sitting on a fortune in cash,why don't they build a factory to build their own panels...??



    Patent problems.



  • Reply 18 of 56
    wigginwiggin Posts: 2,265member
    Quote:
    Originally Posted by Scorpius_1 View Post


    Apple is sitting on a fortune in cash,why don't they build a factory to build their own panels...??



    Or better yet, invest in other companies to help them get up to speed to be suppliers. Preferably in other parts of the world (Brazil?) to help insulate Apple from supply disruptions (political, natural disasters, legal, etc).
  • Reply 19 of 56
    .....
  • Reply 20 of 56
    srangersranger Posts: 469member
    Quote:
    Originally Posted by ghostface147 View Post


    Unless there is a contract stating that Samsung has to provide panels for X amount of time, Samsung should tell Apple go to hell just for spite. You block our stuff in other countries, we'll stop making panels for you.



    That is what I would do if I was Samsung.... Playing hardball can work both ways....
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