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iPad 3 on the backburner due to Retina displays

While the rumor mill have been speculating in an iPad 3 with Retina display coming before the end of 2011, reality has always been that the iPad 3 would likely not arrive until early 2012. With the recent report by Digitimes it looks like Retina display cost and yield rates are pushing the iPad 3 into 2012.

iPad 3 likely to get Retina display

Their Apple supply chain contacts indicate that Apple has cancelled orders for iPad 3 parts for this fall, with earlier figures suggesting 1.5-2 million units for third quarter and another 5-6 million in the fourth quarter. It is believed that cost and yield rates for the Retina display (2048 x 1536 resolution) is the main cause.

The sources believe that the yield rate of the 9.7-inch panel that feature resolution of 2,048 by 1,536 may be the major reason of the supply delay since such panels are mainly supplied by Japan-based Sharp with a high price and Apple’s other supply partners Samsung Electronics and LG Display are both unable to reach a good yield. Since Apple is unable to control a certain level of supply volume, the iPad 3 is unlikely to be mass produced as scheduled, the sources added.

So it looks like the supply chain is failing Apple in their attempt to deliver another iPad model this year as they continue to battle Samsung and other tablet manufacturers on the legal front.

[source: Digitimes via TiPb]

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Filed in: Apple iPAD, What's next

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