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Japan's Sharp cuts iPad screen production

  • Sharp has slashed production of 9.7-inch screens for Apple’s iPad, according to sources familiar with the matter.

    Sharp's iPad screen production line at its Kameyama plant in central Japan has dropped to the minimal level required to keep the line running.

    Sharp has stopped shipping iPad panels though the level of remaining screen output is not yet known.

    Speaking to Reuters news agency, the sources did not cite a reason behind the stoppage in production.

    Industry analysts suggest a seasonal drop in demand, Apple switching to another supplier or demand picking up for the iPad mini as possible motives.

    Indications that iPad sales are waning could add to worries over the appeal of Apple products.

    Earlier this week, it was reported that Apple was cutting orders for iPhone 5 screens and other components from its Asian suppliers.

    The news led to Apple shares temporarily dropping below $500, well under its yearlong peak of $705.

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