For all the talk about smartphone shortages -- the HTC Droid Incredible, EVO 4G, Motorola Droid X, and Apple iPhone 4 -- it seems smartphones aren't the only mobile devices in danger of short supply this summer. The iPad may be the next supply-chain victim.

Although consumers in some markets have already witnessed short iPad supplies, there are indications that the growing demand for the tablet devices may make the shortage worse before it gets better. One of Apple's suppliers, LG Display, is admitting it may not be able to keep up with the demand for LCD components.

LG Display said it may cut production of LCDs next month as demand from TV makers wanes. But that's not necessarily good news for Apple. Less focus on TV LCDs doesn't equate to more availability to produce iPad screens. The bottom line: LG said it's not able to meet the rising demand for Apple's iPad.

"We are now running at full capacity, but we are considering production cuts in August," Reuters reported LG Display CEO Kwon Young-soo as saying. "The level of reduction will be smaller than the industry average."

LG Needs Pinch Hitter

Apple has sold nearly 3.5 million iPads since the tablet device made its market debut in April. But the next 3.5 million may depend on Apple finding an additional supplier.

"Demand [for iPad screens] keeps growing and we can't meet it all," Young-soo said. "Apple may have to delay launches of the iPad for some countries due to tight component supplies and strong demand. We are considering increasing production lines for iPad products, but overall supply is likely to remain tight until early next year."

With Apple expanding the iPad to nine new markets, and with demand expected to swell in the months ahead, the iPad could see even greater shortages than HTC and Apple smartphones -- if LG can't ramp up capacity in a hurry, or if Apple can't find a backup supplier.

A Smashing Success

Avi Greengart, an analyst at Current Analysis, is surprised at the impact of the iPad, a 1.0 product. Although some analysts forecast what he calls "insane demand" for the iPad, the first-generation product is performing like a third-generation product. That's good news for LG and Apple, though it may lead to short-term shortages.

"People are buying the iPad -- or at least trying to -- who would normally sit on the sidelines and wait for a new class of product to go through several generations," Greengart said. "The iPad is based on a proven user experience from the iPod touch and the iPhone, and it ties into all of the infrastructure that Apple has set up for those products. The iPad has taken on the characteristics of the iPhone and iPod touch instead of a new computing product, even though that's actually the space in which you find it."

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