Sharp has drastically cut the production of iPad displays to the point that the build process is “nearly halted,” according to a report from Reuters on Friday. It’s the second time this week that we’ve heard stories related to Apple’s supply chain—earlier, a report suggested that all of Apple’s suppliers had received cuts in orders for iPhone 5 parts, resulting in fears that demand for Apple products was cooling.
Our guess is Sharp halted production of 9.7-inch display panels after producing enough panels to surpass demand during the fourth quarter and holiday season. It’s also possible that there’s just larger demand for the smaller iPad mini, which is cheaper than the fourth generation iPad.
Reuters said that production levels haven’t changed at LG or Samsung, two other firms that also build iPad displays.