LG Display Can't Meet Apple Demand Yet May Cut Production

When the demand for components like LCD screens that go in Apple products like the iPad is so high that Apple can't build enough and the lack of LCD screens is the cause you would think that production of LCDs would increase. I mentioned last week that LG Display stated it would likely be 2011 before it could meet the demand for LCD screens from Apple and other makers.Reuters reports that despite the fact that LG recognizes it is unable to meet the demand for screens, the company is considering production cuts. That makes no sense at all to me. LG Display's CEO states that the production cuts will be smaller than the industry average.

The reason for the cuts is low overall demand for LCDs. LG expects demand to pick up in September. I guess we are to assume that the demand from Apple LCDs that LG is unable to meet doesn't make it enough money to continue operating at full capacity despite the fact that the demand for the screens is there.