Tuesday Apple Rumors: Production Problems Hit iPad Mini

But the smaller iPad is still expected to launch in weeks

By Christopher Freeburn, InvestorPlace Writer


daily apple rumors AAPLHere are your Apple rumors and AAPL news items for today:

Bezel Trouble: An analyst is warning that Apple (NASDAQ:AAPL) is facing production delays with its iPad Mini, Business Insider notes. Apple has not confirmed the existence of a smaller-screen iPad, but most analysts expect it to unveil the device, meant to compete with smaller tablets from Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG), later this month. Kirk Yang, an analyst at Barclays (NYSE:BCS), says supplies of the new iPad Mini could be constricted because Apple’s manufacturing partners are having difficulty producing screens with thinner bezels. Still, Yang doesn’t think the production problems will prevent Apple from launching the iPad Mini in “a few weeks,” with shipments beginning in time for the holiday season. Yang expects about 10 million units to be produced by year-end. He predicts the iPad Mini will be priced around $250.

Apple’s Ping Gets Plunked
Apple’s Ping Gets Plunked

Tablet Ban Lifted: Samsung has persuaded a judge to remove an injunction barring sales of its Galaxy Tab 10.1 tablet in the U.S., the Los Angeles Times noted. The ban on the Samsung tablet was issued in June as the Apple’s patent lawsuit against the South Korean electronics giant headed toward a jury trial. In August, the jury ultimately ruled in Apple’s favor, awarding it $1 billion in damages. The injunction was based on an earlier court ruling that Samsung’s tablet likely infringed a specific Apple patent. While the jury ultimately found that the Galaxy Tab did violate certain Apple patents, the patent cited in the injunction was not among them. In addition to getting the Galaxy Tab ban lifted, Samsung added the iPhone 5 to a separate patent-infringement suit against Apple.

Screen Supply Eases: Production of the in-cell touchscreens for the iPhone 5 has increased as manufacturers overcome initial difficulties, mitigating supply concerns, AppleInsider notes. According to reports, Sharp, one of three companies supplying the touchscreens, encountered manufacturing problems sufficient to prevent it from delivering any screens prior to the iPhone 5’s launch last month. In-cell touchscreens are thinner than traditional LCD touchscreens, but are harder to manufacture. An analyst with Sterne Agee said remaining supply constraints with the iPhone 5 involve Apple’s ability to assemble the phones fast enough to meet consumer demand. The analyst estimates that Apple sold 27 million iPhones in the last quarter and will sell 46.5 million in the current quarter.

For more about the company, check out our previous Apple Rumors stories.

Article printed from InvestorPlace Media, https://investorplace.com/2012/10/tuesday-apple-rumors-production-problems-hit-ipad-mini/.

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