Apple iPad Mini Facing “Massive” Component Problems

Apple is facing mass production problems with the Company struggling to deliver their much touted iPad MiniParts providers are facing massive cashflow issues due to production issues across the supply chain for the device.

According to Taiwan based DigiTimes, panels used in the iPad mini have reportedly suffered low yield rates, and backlight module providers are facing component supply issues, which is affecting the amount of iPad minis that can be shipped in 2012.

DigiTimes sources said AU Optronics (AUO) and LG Display (LGD) provide panels for the iPad mini and that AUO is having mass production issues. This has caused the overall shipment proportion of AUO panels used in the iPad mini to drop to about 22%, down from AUO’s original 40% target, added the sources.

Apple is said to have set a ten million shipment target for the iPad mini for the fourth quarter of 2012, but this is set to be sub six million due to the delays AUO executives have said.

New iMac models also use display screens supplied by LGD. They have had to develop a new production process for mass producing iMac panels and have limited capacity, resulting in a slow down of shipments.