Apple Inc. (NASDAQ:AAPL), which it has been experienced wildfire sales of the iPhone 5, it has been dealing with manufacturing delays of the device that has tamped down its sales numbers. The main culprit has been the touch-cell displays, which one company supposedly was having such trouble making the displays that they couldn’t get them in the supply chain until very close to the launch date.
Well it seems that reports are surfacing that Apple Inc. (NASDAQ:AAPL) may be encountering similar supply and manufacturing delays for the not-yet-revealed iPad Mini, which was slated to be unveiled later this month. Kirk Yang, an analyst at Barclays, says that it seemed that while Apple Inc. (AAPL) still looks to be on track for its new product launch in the middle of October, “supplies could be tight heading into the holiday season.” The problem seems to stem from a couple of issues – first, a switch from indium tin oxide (ITO) glass to ITO film – which is supposed to enhance signal quality for wireless and data services; also, Pegatron Corporation has been having trouble creating thinner bezels which are required for the smaller iPad. However, partner Hon Hai has indicated its capability to increase production of the bezels to compensate for Pegatron.
Despite those delays, Barclays still believes that Apple Inc. (NASDAQ:AAPL) should move about 10 million iPad Mini devices during the fourth quarter of 2012, though acknowledges that the company may have trouble keeping up with supply in the early weeks. How investors in Apple Inc. (NASDAQ:AAPL) stock – like billionaire fund manager David Tepper Appaloosa Management LP – will view this latest news may not be known until after the iPad Mini finally launches and they note any problems with device shortages in key retail markets.