DigiTimes has received information from unnamed sources that Apple has sought increased help from Samsung for production of iPad 2 display panels in the month of July. Due to Apple’s current main supplier, LG Display’s (LGD), inability to meet their quota, additional suppliers were called in to fill orders. In addition to Samsung, Chimei Innolux (CMI) took up the slack.
LGD’s 9.7-inch display panel shipment came in one million units short for the month of July, due in part to the fact that the units have had trouble passing muster with Apple’s ridged quality requirements. According to DigiTimes’ source, LGD’s panel did not pass the drop test and the backlight units failed.
This new collaboration between Samsung and Apple isn’t likely to be a permanent one. Although Samsung is already a small-time manufacturer of Apple’s display panel, the increased production and a potentially larger contract is unlikely considering Samsung’s Galaxy Tab 10.1 is in direct competition with the iPad. Additionally, Apple has already received a preliminary injunction against Samsung to temporarily halt sales of its tablets in the European Union.
What is more likely is that CMI will become Apple’s new top dog for 9.7 inch display panels. The Foxconn Electronics affiliate was recently certified as one of the panel suppliers and is gaining momentum in the production of more units.
DigiTimes’ source pointed out that LGD will remain Apple’s top display panel supplier if they are able to fix their quality issues quickly.