Supply chaos puts halt to Apple iPad 3 plans

There will be no iPad 3 this year according to channel partners based in Taiwan.

The supply schedule for the second half of this year has been utterly scrapped, which will have a knock-on effect on the rest of the industry. Rivals planning a launch to steal some of Apple’s glory are finding themselves nonplussed and having to delay their products if they want to attempt to steal the limelight.

According to sources familiar with the matter, reports Digitimes, one of the main problems is a gap in the panel supply chain. 9.7 inch panels with a 2,048 by 1,536 resolution are coming up short and Apple’s contractors in Samsung and the company formerly known as Lucky Goldstar can’t manage a good yield on the vital component. As a result, Apple’s whip can’t be cracked, and the control on volume is coming up short.

Besides, the panels Apple wants for its new product need a better backlight source, so a single edge won’t cut it for quality. There are many issues plaguing Apple getting it right and the control-freak company refuses to launch without the perfect set of circumstances in supply.

Still, production for the iPad 2 is going strong as its contracted manufacturing warehouses in Asia continue to chun out millions of panels for the gadget which is still very much in demand.

Meanwhile, Digitimes says, there is an inventory glut for rivals who have thought their tablets would shift. Instead they are sitting untouched in warehouses and forcing manufacturers to slice and dice their budgets and point of sale to minimise budget damage. 

It’s going to lead to a price war as rivals clamber for the killer app to take down Apple’s dominance of the tablet industry. Curiously, players not under the fruity banner are pinning their hopes on Samsung and Motorola, which themselves are struggling with an aggressive patent lawsuit strategy from Cupertino in order to block gadgets from the market.

Google’s Motorola buy, announced yesterday, is seen by some industry watchers as an important shift in the consumer electronics market, as the most disruptive company to Apple’s roadmap goes from software to hardware. Industry watchers predict it is working on a flagship product that will truly rival Jobs’ kit, compared to the legion of try-hards that have, essentially, failed to sell.