iPad 5 Production to Rise in July After Spring Trial

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Trial production for
Apple'sAAPL
fifth-generation iPad is expected to "begin soon," Taiwan supply chain sources claim.
According to
DigiTimes
, "volume production" will begin in July, "with monthly shipments ramping up to 2-3 million units in September." That number sounds relatively low for Apple, particularly if the device is going to ship anytime soon. Apple could feasibly stockpile several million units for a September or October release. If volume production does not exceed a few million units per month, however, the company could have a difficult time keeping up with demand. Right now, it is not yet clear why Apple would only be able to produce such a small number of fifth-generation iPads. DigiTimes' sources claim that the next iPad will be thinner and lighter (two easy assumptions that have already been made by analysts and bloggers alike). The next iPad may also use just one LED light bar to light the screen (versus two for the previous model), which could be the cause of the weight reduction. None of these features are enough to radically adjust Apple's supply chain and cause massive production issues, so investors should think about that when analyzing this report. Not surprisingly, Sharp and LG Display are expected to provide the panels for the next iPad. Samsung is also on the list of expected suppliers, which is a bit more interesting. Will Apple really agree to take another large order of panels from a company it continues to battle in court? The iPhone maker has been trying to replace Samsung with
other suppliers
for more than eight months. Unconfirmed rumors suggested that Apple was forced to
reduce its initial iPhone 5 shipments
because it shifted from Samsung to other suppliers. If true, it is almost hard to believe that Apple would go through that in 2013 -- even if it meant sticking with Samsung for another year. Then again, Apple may not need to produce more than a few million iPad 5 units per month. While the new tablet may sell well, it is not expected to be nearly as popular as the second-generation iPad Mini, which is
likely to trounce
its 10-inch sibling.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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