Apple's Upcoming High-End iPad To Face Low Initial Supplies Over Production Woes: Report

Apple Inc’s AAPL could face short initial supplies of the soon-to-be-launched iPad Pro, Bloomberg reported on Monday. 

What Happened: Apple is expected to launch its new 12.9-inch iPad Pro with the MiniLed display technology later this month. The Cupertino, California-based company’s overseas suppliers are however facing poor manufacturing yields and at least one of them had to recently pause production as a result, the Bloomberg report said. 

The maker of iPhone and MacBook devices is still aiming to reveal the products later this month, the report said — citing people familiar with the matter. The production delay could however mean the larger iPad Pro will ship later and in constrained quantities.

The Cupertino-based company is reportedly looking to include a Mini-LED screen with at least the 12.9-inch screen model, which is expected to improve contrast ratios and deliver a brighter picture. 

The iPad Pro was last updated by Apple in March 2020.

At least three Taiwan-based companies, namely Ennostar Inc, General Interface Solution Holding Ltd. and Taiwan Surface Mounting Technology Corp are among the key suppliers of the MiniLED technology.  

Nikke Asia last week reported, citing global semiconductor chip shortages, that both MacBook and iPad devices are facing production delays.

Why It Matters: The iPad recorded a 41% jump in sales to $8.4 billion for the quarter ended Dec. 26, on a year-on-year basis, the most since 2014 and helped by a surge in work-from-home demand. That represents about 8% of the company’s total net sales of $111.44 billion during the quarter.

Price Action: Shares of Apple closed 2% higher at $133 on Friday.