Apple will reportedly drop AU Optronics as a major panel supplier for its next generation iPad mini following difficulties in production.
The site says AUO shipments for the current generation device are expected to decrease from 4 million units in Q1 to 2.5-2.8 million units in Q2. The drop comes as overall shipments for the iPad mini are expected to decrease 20-30% in the quarter to about 10 million units.
AUO is said to see further cuts from Apple as the company transitions to the new iPad mini for which it will not be a major supplier.
AUO has faced issues in producing iPad mini panel technology for Apple and is not expected to continue acting as a major panel supplier for the device. Despite AUO’s struggles, the company has still submitted panels for use in the next-generation iPad mini for certification by Apple, the sources said, adding that so far LG Display and Sharp have been selected as panel suppliers for the upcoming tablet.