AUO supply of iPad mini panels in 2Q13 expected to slip sequentially

AU Optronics' (AUO) shipments of panels for the iPad mini are expected to decrease from four million units in the first quarter of 2013 to 2.5-2.8 million units in the second, according to Taiwan-based supply chain sources.

AUO's drop in the second quarter will also come as overall shipments for the iPad mini are expected to drop around 20-30% on quarter to around 10 million units largely due to the time period traditionally being a slow purchasing period for consumers. The remaining seven million panels for the device are expected to come from LG Display, said the sources.

Additionally, AUO is expected to see further cuts in orders from Apple in the third quarter as Apple gears to release the next-generation iPad mini either in late third-quarter 2013 or the following quarter. 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.

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