Apple can't keep up with demand for the iPad 3, even with a growing list of hardware concerns. Apple are facing production concerns now due to a shortage of Retina displays and a shift in worker policy by Foxconn which has lowered the daily hours for their staff.

Shaw Yu, an analyst with Sterne Agee said that the demand for the iPad is still strong and he checked with the Apple supply chain to find that the touchscreen demand was still strong.

The supply of the high resolution Retina 2,048×1,536 pixel screen is limiting the shipments of the iPad 3 although Yu said that the situation should improve in the next quarter as additional production lines are added.

Samsung are the primary supplier for many components in the iPad 3, including the Retina display, however Sharp and LG are now helping with small volume shipments to take the strain from Samsung.

Apple have been heavily involved with the Fair Labor Association, keen to show the public they are working hard to improve worker conditions in the Far East. Partner Foxconn have subsequently lowered working hours as they move to fix violations found by the FLA audit. You can read more about this over here on AppleInsider.

Foxconn workers are not happy with the hours being cut to 49 per week, as it will mean they take home less money every month.

Kitguru says: Are you waiting on an iPad 3?

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