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Apple Drops AUO for iPad Mini 2 & Adds Low Energy Displays

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According to a new report today, Apple has dropped AUO, a Taiwanese display supplier, from its list of suppliers for IPad mini 2. AUO had supplied LCD for iPad mini along with LG Display and Sharp, but could not secure orders from Apple since it had failed to develop a high penetration LCD for iPad Mini 2.

Industry insiders are interested in whether Samsung Display can replace AUO. LG Display already secured order from Apple. Sharp seems to have no problem in getting approval from Apple as a supplier for iPad mini 2 despite some product quality problems, because it is the only supplier of oxide semiconductor LCD.


Oxide semiconductor LCD has an advantage of saving electricity. Apple plans to apply oxide semiconductor LCD to iPad mini 2 despite the initial low production yield, because it gives the advantage of saving electricity.


Last year, AUO started to supply panels to Apple thanks to its price competitiveness. However, it could not convince Apple, as it failed to meet the supply deadlines or to develop an LCD with high penetration rate.


Also, the improved relationship between Samsung Display and Apple seems another factor for AOU being dropped. "Samsung Display is known to have developed an LCD sample for iPad mini 2. The company may be able to secure more order than Sharp did, if it can stabilize production yields", said a person from the LCD industry.


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