Apple Cancels All Plans For iPad 3 This Year? – [RUMOR]

According to a new report by Digitimes, Apple has cancelled its plans to launch “iPad 3″ in the second half of 2011. While it is unclear if the plans originally existed in the first place, the publication notes that sources within Apple’s supply chain suggest the company will only be shipping the iPad 2 this Fall.

The report notes that Apple was originally set to launch iPad 3 with a shipment volume of 1.5-2 Million units in Q3, 2011, eventually moving to a shipment volume of 5-6 Million just before the holiday season. One reason offered up for the device’s delay is due to difficulties in the manufacture of its “Retina” display.

Specifically, the publication’s sources note that Apple may not have been able to reach a good yield rate.

The sources believe that the yield rate of the 9.7-inch panel that feature resolution of 2,048 by 1,536 may be the major reason of the supply delay since such panels are mainly supplied by Japan-based Sharp with a high price and Apple’s other supply partners Samsung Electronics and LG Display are both unable to reach a good yield. Since Apple is unable to control a certain level of supply volume, the iPad 3 is unlikely to be mass produced as scheduled, the sources added.

Sources from panel players also pointed out that the 9.7-inch panel with high resolution requires a much larger backlight source and a single edge light bar is hardly able to reach satisfaction levels. Due to iPad 3′s requirements over the physical thinness, rich color support and toughness will all conflict with the panel’s technology restrictions; therefore, this could cause a delay in the launch.

As Apple’s drive to sell the iPad 2 shows no signs of slowing down, the reported axing of plans to introduce a new model of the popular tablet before the holidays is bound to put pressure on tablet competitors such as Samsung to step up their game. In fact, by continuing its manufacturing ramp up leading up to the holiday season, Apple is now expected to reach shipments of up to 28-30 Million iPad 2 units.

Interestingly, in June of this year, LG supplied 1-1.5 Million display panels to Samsung, with the Korean-based company ordering the same amount of displays from LG in July.