Apple has cut its 9.7-inch iPad panel orders from LG by 50% or more, according to a DigiTimes report. This has reportedly reduced LG's capacity utilization rate at its P9 factory to about 60%.
Apple has reportedly decided to cut shipments for its 9.7-inch iPad products in the first quarter to as low as six million units, down from Apple's originally estimated 12-15 million units, due to increasing popularity among consumers for the iPad mini, said the sources.
The cut has brought a drop to the P9 factory's to capacity utilization rate to 60% and it may drop even lower to 50% throughout the first quarter, added the sources. LG Display's average capacity utilization rate is also likely to remain at about 80% throughout the time period as a result, noted the sources.
LG is reportedly increasing production of TV panels at the plant to compensate for the decrease in capacity utilization rate.