Computer Parts Greenville

Panel production, not less demand accounts for the slowdown in iPad sales, according to The Wall Street Journal. LG, the primary LCD supplier for the Apple iPad, takes the blame as it reports that its production system has failed to keep up with new orders from Apple.

LG expects new production capacity to come online by Q2 of 2011. The company forecasts that by that time it will meet its demand from Apple by that time. Meanwhile, regional iPad sales are likely to slow because Apple continues to release iPad into additional markets. By the end of the month, Apple plans to have iPad available for sale in 19 countries.

As demand for television displays softens, LG expects to have idle capacity that may or may not be adaptable for the manufacture of smaller displays. The project scheduled for completion next year is a $512 expansion of a mobile display production line that will bring a capacity of 20,000 glass sheets used in the production of LCD screens.

The growing popularity of mobile phones and tablet computers other than iPad has contributed to the conditions causing the well known electronics manufacturer to buckle.

In spite of its production problems, second quarter profits announced by LG indicate that its bottom line is unaffected: net profits increased by more than 50% on sales increases of just over one-third.

So far, Apple has not responded to the media reports concerning the production issues at LG that have throttled iPad sales. In the period from April through June, Apple reportedly sold 3.3 million iPads, with worldwide demand for the devices remaining exceptionally strong.