LG Display (LGD) reportedly has lost some 9.7-inch iPad 2 panel orders to Samsug Electronics and Chimei Innolux (CMI) after its recent shipments to Apple experienced quality issues, according to industry sources.
LGD’s Gen 6 LCD fab has been used to manufacture millions of 9.7-inch IPS LCDs for Apple’s iPad. The plan was to increase production from three million per month in the second quarter to four million per month in the third quarter. According to DigiTimes, due to failed backlight units during drop tests Apple has suspended new orders. LGD’s production rate was 2.5 to 2.6 million in July.
I don’t know how likely this is, but Apple is reportedly engaging Samsung and Chimei Innolux to make up for the shortfall. Samsung shipped almost two million iPad LCDs while CMI shipped 450,000 in July.