AUO Penetrates Supply Chain of Apple

Taipei, July 6, 2012 (CENS)--Wire services reported that Apple has asked suppliers to start mass producing iPad mini from Septembers. Accordingly, Taiwanese component suppliers, such as AU Optronics (AUO), F-TPK, and Taiwan Surface Mounting Technology, will start making shipment in August, giving them strong growth momentum in the third quarter.

As a result, AUO will strive to turn around its operation in the third quarter, when Taiwan Surface Mounting Technology may rack up record sales for second straight quarter.

Apple has transferred orders for retina display for iPad to Sharp and Taiwanese component suppliers. The imminent rollout of iPad mini will bring large amount of business to Taiwanese components suppliers further, injecting fresh momentum to Taiwanese electronic industry in the second half.

Institutional investors estimated that Apple will launch iPad mini in September or October, with shipment volume projected at over 10 million units this year. The new product will be priced at US$249-299, posing major threat to the sales of low-priced tablet PCs of Google and Amazon with a price tag of US$199 and Microsoft’s Surface tablet PC, priced at US$399-599.

Wall Street Journal reported that Apple has asked LGD and AUO to mass produce display for iPad mini in September, featuring 7.85” in size and resolution of 1024x768 for screen. By comparison, new iPad measures 9.7” in size and is furnished with a retina display featuring resolution of 2048x1536.

Supply of iPad mini display represents the first time for Apple to penetrate the supply chain of Apple’s tablet PCs. The new business will help AUO turn its operation into the black.

TPK will take on touch-panel orders for iPad mini entirely and is a major touch-panel supplier for new iPad. Therefore, it is expected to enjoy booming shipment from August.

iPad hit the market in April 2010. Display Search estimated that Apple will account for 61% share of the global tablet-PC market, whose scale will top US$66.4 billion this year. Without the use of retina display, iPad mini will boast lower cost, enabling Apple to further expand its market share.