Bad news. The iPad is too hot
It's selling like hot cakes.
Looks like the iPad supplies will be constrained until at least next year.
http://www.appleinsider.com/articles/10/07/22/lg_unable_to_meet_ipad_display_demand.html
LG unable to meet Apple's iPad display demand
By Josh Ong
Published: 11:15 PM EST
LG Display's CEO said Thursday that the company had been unable to fulfill orders for displays used in Apple's iPad, but promised "without fail" to catch up with demand by Q2 2011.
Chief executive Kwon Young-soo explained that LG was currently running "at full capacity," but still experiencing production shortages of the iPad display. "Demand (from Apple) keeps growing and we can't meet it all."
LG is considering increased production for iPad products, but "overall supply is likely to remain tight until early next year," Kwon said. He then set a target of second quarter 2011 for LG to meet orders for the displays.
iPad demand has surpassed even Apple's own expectations. Tim Cook, Apple's Chief Operating Officer, admitted Tuesday that the company had been caught off guard by the high demand for the iPad. 3.27 million iPads were sold through the end of Apple's most recent financial quarter.
In spite of a backlog of iPad orders, Apple announced Monday that it would release the iPad in 9 more countries this Friday, fulfilling its goal to launch in these countries by the end of July.
In April, Apple announced that the international launch of the iPad would be delayed by one month. The Cupertino, Calif., company cited surprisingly strong demand as the cause of the delay. However, some analysts have pointed to LG's display shortages as a limiting factor in the production of the device.
According to Reuters' coverage of the LG executives' comments, "Apple may have to delay launches of the iPad for some countries due to tight component supplies and strong demand."
LG also announced Thursday that it was investing over $500 million in production of mobile phone and tablet sized displays. Last year, Apple prepaid $500 million to LG for a guaranteed 5-year supply of LCD screens for Macs and handheld products.
http://www.reuters.com/article/idUSTOE66M00620100723
UPDATE 1-LG Display may cut output; can't meet iPad demand
Thu Jul 22, 2010 8:43pm EDT
* Production cut will be smaller than industry average
* Unlikely to meet strong iPad demand at least until Q2 2011
SEOUL, July 23 (Reuters) - LG Display (034220.KS) may cut production of its liquid crystal displays (LCD) next month due to weak demand from TV makers but is unable to meet strong demand tied to Apple's iPad tablet computer, its chief executive said.
"We are now running at full capacity but we are considering production cuts in August," LG Display CEO Kwon Young-soo told reporters. "The level of reduction will be smaller than the industry average."
The effect of southern Europe's debt crises is the only major concern for LG Display but Kwon said overall demand for LCD may pick up along with flat panel prices from September. LG Display reported Thursday its second-quarter operating profit more than doubled to 726 billion won ($603.5 million). [ID:nTOE66J041]
"We expect the market to improve from September and prices to stabilise," Kwon said.
The company is a supplier to Apple's iPad, which has sold 3.47 million units since its April launch, and Kwon said LG Display was unable to meet growing demand from Apple.
"Demand (from Apple) keeps growing and we can't meet it all. Apple may have to delay launches of the iPad for some countries due to tight component supplies and strong demand.
"We are considering increasing production lines for iPad products but overall supply is likely to remain tight until early next year."
Apple said this week it planned to start selling the iPad in nine new international markets on Friday, making the device available in a total of 19 countries. [ID:nN19117325]
Analysts expect iPad demand to accelerate in the coming quarters. Research firm iSuppli raised this week its forecast for iPad sales by 82 percent to nearly 13 million units this year.
LG Display, which plans 5.5 trillion won in investment this year, announced on Thursday a 618 billion won investment plan to boost production capacity for small-sized flat screens used in mobile phones and tablet PCs.
Kwon's comments were made late on Thursday and embargoed until Friday morning.
(Reporting by Miyoung Kim; Editing by Jonathan Hopfner)