DisplaySearch analyst Richard Shim says supply chain issues with Apple’s display partners could limit the initial run of iPad minis causing a longer than usual wait time for delivery.
One of the issues is that at $329, the new iPad mini is the least expensive iPad yet and could well spark a bigger than expected demand.
“The new low price point is expected to appeal to a wider audience and drive up demand. However, panel supply chain indications point to an even more than typical tightness in the market for the iPad Mini,” Shim wrote in a blog post.
Shim also said Apple is working with established partner LG Display for the panels that Apple’s manufacturing partner Foxconn is using to make the iPad mini. However, a new partner, AUO is having yield issues with the iPad mini’s new 7.9-inch panel.
While Samsung was Apple’s initial sole supplier for the first iPad, Shim says Apple and Samsung appear to be “winding down their relationship most likely due to the legal conflicts the two have been embroiled in recently.”