Citing the elusive “Taiwan-based supply chain sources,” DigiTimes is reporting that AU Optronics is seeing decreased shipment orders of iPad mini panels, going from four million units in the first quarter of 2013 to 2.5-2.8 million units in the second quarter. The supplier is also rumored to be getting dropped by Apple as a major panel supplier for the next-generation iPad mini.

The iPad mini is also expected to see a drop in overall shipments of around 20-30% as we enter a period that is traditionally “a slow purchasing period for consumers.”

AU Optronics has reportedly faced issues in producing iPad mini display panels, which is why LG and Sharp might step in to replace the supplier. According to DigiTimes, AU Optrinics is “not expected” to remain an iPad mini panel supplier though.

Despite the issues that the supplier has faced, AU Optronics has still reportedly submitted panels for use in the next-iPad mini for Apple certification. So far though, sources say that LG and Sharp are the only ones that have been chosen as panel suppliers for the next-generation iPad mini.

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