Production for new iPad Screen Begins

Production for the high-resolution displays to be featured on the next-generation of iPads has just begun. "It's happening QXGA, 2048x1536. Panel production has started [for the next-generation iPad]. There's three suppliers," said Richard Shim, an analyst at DisplaySearch in an interview. Shim referenced other reports that put three companies behind the production: Samsung, Sharp, and LGD.

This move is particular advantageous for Sharp. "This would allow Sharp to count on a more stable sales volume and would help its technology gain more attention," said Nobuo Kurahashi, an analyst for Muziho Investors Securities, in a report to the Wall Street Journal.

The Wall Street Journal believes the new Apple relationship with Sharp to be mutually beneficial for both companies. "The Sharp relationship will enable Apple to diversify away from Samsung and gain additional display capacity with leading-edge technology. Given Apple is fronting the capital spending, we also see these panels being procured at good prices, which means better-than-expected margins,” the paper says.

Reducing Risk

And as if the new Sharp connection wasn’t enough, the fact that Apple is relying on three different suppliers for the display downplays the challenges of manufacturing a 10-inch-class QXGA screen in high volume. "I would imagine there would be concerns about [adequate] supply given the resolution of the display but you've got three different suppliers at this point. They should have enough to launch the product," Shim said.

The 2048x1536 screen will most likely be the center of attention for the next generation of iPad, or iPad 3 as it’s being called. That resolution is a huge improvement over the iPad 2, which uses a 1024x768 display. "It takes a couple of weeks for the production to go to the ODMs (the manufacturers). Then the manufacturer puts them in the housing. Then, that goes off to shipment. We could start seeing finished devices produced in December. And then being ready to be shipped in January. With volumes gearing up in February and March," he said.

Shim noted that the iPad 3’s display is not an AMOLED (active-matrix organic light-emitting diode) display, but instead uses IPS (in-plane switching) technology the way that current Apple products do. Apple has also expressed interest in producing a mini-iPad that would have a 7.85-inch screen, Shim reports. That would probably come sometime in the last half of 2012.

"If there's demand there. There's no reason they wouldn't build a 7.85-inch iPad," Shim said. Amazon’s 7-inch Kindle Fire could spur the market demand for smaller tablets if the device turns out to be wildly popular. Last week, Shim noted that Amazon is on track to produce 6 million Kindle fire tablets in the current quarter.

Not Much Known

The launch of the iPad 3 certainly won’t be a surprise to anyone, but its features promise to shock. Thus far, nothing is known about the new device except for its screen resolution. Rumors are still swirling concerning its processor, network connectivity and hardware specifications. As is its nature, Apple has not commented on any of the rumors.

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