The sources of this rumor stated that Apple and Foxconn Electronics have been in discussions for quite some time in terms of the TV's mass production schedule, but that Apple has been considering where panel supply for the TV will come from, as Ultra HD TV panel makers, most of whom are based in Taiwan, are expected to be producing at nearly full capacity in 2013 in order to meet demand from China-based TV vendors.

This would support the news that we reported on last week stating that Hon Hai had secretly met with Apple in Japan to Discuss iTV Panels.

Additionally, other panel makers in Apple's supply chain that may have the ability to produce Ultra HD TV panels are expected to allocate most of their panel production to the company's iPhone, iPad and iPad mini products instead, as ultra-mobile devices are expected to be popular in the market during 2013, the sources noted.

DigiTimes' sources added that Apple is banking on LG Display to be able to mass produce Ultra HD TV panels by the second half of the year. If LG is successful and has ample supply of the technology, Apple may try to release the TV by the end of 2013 but is more likely to do so towards the beginning of 2014.

However, this rumor's timing is a little questionable in that a second report from DigiTimes this morning is stating that the adoption of Ultra HD TV's have been surprisingly slower than expected and are constrained by broadcasting standards. The research firm WitsView notes that Ultra HD TV penetration rates will stay below 5% until 2015.

In that light, Taiwan's industry insiders may have an interest in pumping up a rumor that Apple will be adopting Ultra HD display panels for an iTV in order to drum up more interest for this "slow moving" display. So while the Apple iTV rumor is interesting, just keep in mind that there may be another motive behind it.   

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