9.7-inch iPad sales are weak, Apple cut panel orders

Sources pointed out that Japan's Sharp has been close to cessation of production of Apple iPad's 9.7-inch panel, due to the demand for smaller iPad mini.

Industry sources familiar with Sharp's production plan stated that Sharp's iPad screen production line at the Kameyama plant in central Japan has been brought down to a minimum level this month, and that by the end of 2012, it has gradually slowed production as Apple controls inventory.

Sharp spokesman Miyuki Nakayama said, "We do not disclose the level of production."

Previously contacted Apple executives did not immediately comment on this.

Sources did not say how much the slowdown in output was due to seasonal demand changes, or whether consumers chose to buy smaller iPad mini screens and could not describe Apple's overall tablet sales.

In addition to Sharp, South Korea's LG Display and Samsung Electronics' Samsung Display also supplies iPad panels to Apple. LG Display is Apple's largest panel supplier.

Both LG and Samsung Display declined to comment.

However, a Samsung Display source said that there has been no significant change in the company’s panel business with Apple. Apple has been gradually reducing the number of panel purchases to Samsung Display.

Informed sources familiar with the LG situation revealed that the company’s iPad panel production in the current quarter has decreased from the previous quarter, mainly because of the seasonally weaker demand after the sales season at the end of the holiday season.