Sharp curbs production of iPad screens

18 January 2013
By Sofia Mitra-Thakur
Mobile version
Share |
Visitors try Apple's iPad mini at an electronics store in central Seoul

Visitors try Apple's iPad mini at an electronics store in central Seoul

Sharp has nearly halted production of 9.7-inch screens for Apple's iPad, two sources said, as demand shifts to its smaller iPad mini.

Sharp's iPad screen production line at its Kameyama plant in central Japan has fallen to the minimal level to keep the line running this month after a gradual slowdown began at the end of 2012 as Apple manages its inventory, the industry sources with knowledge of Sharp's production plans told Reuters.

Sharp spokeswoman Miyuki Nakayama said: "We don't disclose production levels".

Apple officials, contacted late in the evening after normal business hours in California, did not have an immediate comment.

The sources didn't say how much of the slowdown was due to seasonal changes in demand or consumers opting for the smaller iPad mini and were unable to characterize Apple's overall tablet sales.

Macquarie Research has estimated that iPad shipments will tumble nearly 40 per cent in the current quarter to about 8 million from about 13 million in the fourth quarter, although Apple's total tablet shipments will show a much smaller decrease due to strong iPad mini sales.

Any indication that iPad sales are struggling could add to concern that the appeal of Apple products is waning after earlier media reports said it is slashing orders for iPhone 5 screens and other components from its Asian suppliers.

Those reports helped knock Apple's shares temporarily below $500 this week, the first time its stock had been below the threshold mark in almost one year.

Apple, the reports said, has asked state-managed Japan Display, Sharp and LG Display to halve supplies of iPhone panels from an initial plan for about 65 million screens in January-March.

Apple is losing ground to Samsung, as well as emerging rivals including China's Huawei Technologies and ZTE.

In addition to Sharp, Apple also buys iPad screens from LG Display, its biggest supplier, and Samsung Display, a flat-panel unit of Samsung Electronics.

Both LG Display and Samsung Display declined to comment.

A source at Samsung Display, however, said there had not been any significant change in its panel business with Apple, which has been steadily reducing panel purchases from the South Korean firm.

A person who is familiar with the situation at LG Display said iPad screen production in the current quarter had fallen from the previous quarter ending in December, mainly due to weak seasonal demand that is typical after the busy year-end holiday sales period.

Apple's iPad sales may have suffered amid a weak Christmas shopping period that hurt other consumer gadget makers as well.

Apple also faces stiffening competition in tablets from a growing crowd of rival products from makers including Samsung with its Galaxy and Microsoft's Surface.

A consumer shift to smaller 7-inch screen devices, which Apple responded to late last year by launching its iPad mini for $329, are adding pressure.

BNP Paribas expects the iPad mini will eat into sales of the full-sized iPad, with the mini rise to 60 per cent of total iPad shipments in the January-March quarter.

Looking to cut into Apple's market share in the smaller segment are Amazon with its Kindle and Google with its Nexus 7.

CEO, Tim Cook, who is credited with building Apple's Asian supply chain, has overseen several gadget launches, including the iPhone 5, the latest iPad models and the iPad mini during his first year, is under pressure to deliver the kind of product innovations that wowed consumers during Steve Jobs' tenure to keep his company's profit growth stellar.

Sharp, which also supplies screens for the iPhone, has been working with its main banks on a restructuring plan after posting a $5.6 billion loss for the past fiscal year.

To secure emergency financing from lenders including Mizuho Financial Group and Mitsubishi Financial Group.it had mortgage its domestic factories and offices including the one building screens for Apple.

In December, Qualcomm agreed to invest as much as $120 million in Sharp and the two companies said they would work to develop new power-saving screens.

Latest Issue

E&T cover image 1607

"As the dust settles after the referendum result, we consider what happens next. We also look forward to an international summer of sport."

E&T jobs

  • Electrician

    The Bristol Port Company
    • City of Bristol
    • C. £31,729 per annum plus supplements, benefits and overtime

    You’re a good team worker with a strong technical capacity – so bring your talents to a new role with one of the area’s leading employers.

    • Recruiter: The Bristol Port Company

    Apply for this job

  • Supply Restoration Team Manager (HV/SAP)

    SSE
    • Oxford, Oxfordshire
    • Salary: £37,588 to £49,645 + Car (SSE8) Depending on skills and experience

    SSE is looking to recruit a Supply Restoration Team Manager to join our existing team in Oxford.

    • Recruiter: SSE

    Apply for this job

  • Electrical Technical Lead - Global Operations, Engineering & Laboratory

    Pfizer Ltd
    • Kent

    An exciting opportunity has arisen to join a dynamic team of professional engineers, supporting the development of novel drugs.

    • Recruiter: Pfizer Ltd

    Apply for this job

  • Supply Restoration Team Manager (HV/SAP)

    SSE
    • Oxfordshire
    • Salary: £37,588 to £49,645 + Car (SSE8) Depending on skills and experience

    SSE is looking to recruit a Supply Restoration Team Manager into our office in Oxford.

    • Recruiter: SSE

    Apply for this job

  • Electronics & Control Systems Engineer

    Frazer-Nash Consultancy Ltd
    • Bristol, Burton, Glasgow, Plymouth, Warrington
    • £ Competitive + Benefits

    We are seeking talented Electronics Engineers at all career levels.

    • Recruiter: Frazer-Nash Consultancy Ltd

    Apply for this job

  • Control and Instrumentation Engineers

    Frazer-Nash Consultancy Ltd
    • Bristol, Burton, Glasgow, Gloucester
    • £ Competitive + Benefits

    Frazer-Nash is currently embarking on a period of significant growth of our electrical, electronics, control and instrumentation capability.

    • Recruiter: Frazer-Nash Consultancy Ltd

    Apply for this job

  • Electrical Engineer

    Gridpower Ltd
    • Newcastle Upon Tyne, Tyne and Wear

    Co-ordination of all project design deliverables and the leadership of a project team to deliver overall project[s] Right First Time

    • Recruiter: Gridpower Ltd

    Apply for this job

  • Electrical Technician

    National Grid
    • England, Lancashire
    • £29000 - £34000 per year

    Electrical Technician - Gas Transmission - Ref. 11206Salary: £29k - £34k, call-out and standby allowance plus job requirement vehicleLocation: Nether Kellet Compressor Station (LA6 1HD), Lancashire National Grid plc is the operator of the GB gas transmiss

    • Recruiter: National Grid

    Apply for this job

  • Engineering Officer

    Royal Air Force
    • Nationwide
    • £30k pay after initial training + £10k Golden Hello

    Responsible for the optimum performance of all RAF technology, and specialise in either Aerosystems or Communications Electronics.

    • Recruiter: Royal Air Force

    Apply for this job

  • Senior Systems Engineer

    Strainstall Marine
    • Cowes, Isle of Wight
    • Competitive + Benefits

    Oversee all aspects of electronic & systems engineering, manufacturing, test engineering and hardware support activities

    • Recruiter: Strainstall Marine

    Apply for this job

More jobs ▶

Subscribe

Choose the way you would like to access the latest news and developments in your field.

Subscribe to E&T