Sharp's iPad screen production line at its Kameyama plant in central Japan has fallen to the minimal level to keep the line running this month after a gradual slowdown began at the end of 2012 as Apple manages its inventory, the industry sources with knowledge of Sharp's production plans told Reuters.
Their sources didn't reveal how much of the slowdown was caused by changes in demand or consumer preference for the iPad mini. Macquarie Research research is reportely estimating a drop of 40% in iPad sales from 13 million to 8 million in Q4. This drop would be offset by strong iPad mini sales.
In addition, Reuters quotes 'earlier media reports' that say Japan Display, Sharp and LG Display have halved iPhone production output from the initial plan for 65 million screens in the first quarter of 2013.