iPad 2 panel shipments slow as Apple prepares for the iPad 3

According to a Digitimes report, panel makers are preparing for a Q4 slowdown as Applecurbs its orders for iPad 2 components. Apple is both selling off excess iPad 2 inventory and preparing for the iPad 3.

Apple cut back on panel orders in Q3 2011, a move that caused LG shipments to fall by 500,000 and CMI panel shipments to be slashed in half. These cutbacks were necessary as iPad shipments reportedly exceeded demand. Industry sources claim Apple has a standing inventory of 4-5 million unsold iPads leftover from Q3 that it hopes to sell in the holiday quarter.

This slowdown in iPad 2 panel shipments also coincides with a manufacturing shift as Apple prepares to phase out the iPad 2 and launch the iPad 3. While iPad 2 suppliers decline, Samsung and Sharp are beginning to increase their shipments of display panels for the iPad 3. Besides these two manufacturers, TPK Holding and Wintek will be shipping iPad 3 touch panels starting in November and December.