The Cupertino company now has its eye set on Sharp and LG Display

May 17, 2013 08:38 GMT  ·  By

Straight from Asia comes new information regarding Apple’s choice in display makers for the next-generation iPad mini which is reportedly slated for Q3 or Q4 2013, but not earlier.

The hit-and-miss DigiTimes claims to have heard from supply-chain sources in Taiwan that Apple is growing tired of AU Optronics’ poor panel production and that it is prepared to rely on LG Display and Sharp from now on.

As it gears up to unveil the second-generation iPad mini, likely equipped with a Retina display this time around, Apple will cut its orders with AUO, the sources said.

“AUO is expected to see further cuts in orders from Apple in the third quarter as Apple gears to release the next-generation iPad mini either in late third-quarter 2013 or the following quarter,” according to the report.

The Taiwanese publication with ties to Apple’s suppliers specifically points out that “AUO has faced issues in producing iPad mini panel technology for Apple and is not expected to continue acting as a major panel supplier for the device.”

AUO is not giving up, though. It still hopes to retain Apple as a client and has “submitted panels for use in the next-generation iPad mini for certification by Apple,” the sources said.

However, the same people noted that “so far LG Display and Sharp have been selected as panel suppliers for the upcoming tablet.”

In other words, AUO is walking on thin ice but there’s no confirmation that it has been completely phased out of Apple’s supply chain.

Apple also sells larger tablets and, since it has also broken off ties with Samsung for numerous components (including displays), the Cupertino giant may be forced to accept AUO’s business whether it likes it or not.