By JURO OSAWA
TOKYO—When Apple Inc.'s new iPad tablet computers go on sale Friday, they won't be equipped with Sharp Corp.'s liquid-crystal-display panels because of a delay in the Japanese electronics maker's delivery, according to a person familiar with the situation.
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Sharp, which makes screens for consumer electronics and its Aquos brand LCD TVs, hasn't yet started delivering the panels but will likely do so as early as this month in an attempt to make the next batch of iPad shipments from Apple, the person said.
Sharp originally planned to start delivering the panels to Apple in late December, but it faced a series of difficulties in customizing them according to the U.S. company's strict requirements for the new iPad, the person said.
The person added the Osaka-based company will remain a supplier of the new iPad's LCD panels, along with South Korea's Samsung Electronics Co. and LG Display Co.
LG Display initially had experienced a delay in shipping panels but has now met Apple's requirements, another person familiar with the situation said but declined to comment on whether LG panels are now being shipped for the new iPad.
"The delivery delay is not only negative for Sharp, but it could give Samsung more bargaining power toward Apple" as the most reliable display supplier, said Mizuho Investors Securities analyst Nobuo Kurahashi.
The delay at Sharp underscores the dependency that Samsung and Apple have on each other, even though the two companies are locked in legal battles over patent issues all over the world. Samsung supplies key components for various Apple products, but the two companies compete in the smartphone and tablet markets with their own products. Last year, Apple first sued Samsung alleging the South Korean company copied its tablet and smartphone designs. Samsung has countersued, alleging Apple violated its telecommunications patents.
The timing of when Sharp can start delivering the panels has been closely watched by the market, as it could impact the overall supply of the new iPad at a time when demand for it is expected to be strong.
Apple said in a statement last week that supplies of the new tablet it had set aside for preorders have already sold out and that the only way customers will be able to buy one when it is released Friday will be through an Apple retail store or through one of the company's authorized resellers.
When Apple last week unveiled its new iPad, one of the most obvious improvements from the existing iPad 2 was the touch-screen display with double the resolution of the previous model. The tablet also comes with increased processing power and compatibility with next-generation wireless technology.
London customers have already begun camping outside Apple stores in preparation for the new iPad tablet.
Sharp is using a new LCD-panel technology it developed last year, which it claims achieves high resolution and low energy consumption. The company produces the panels at its plant in Mie Prefecture, central Japan.
Separately, Sharp said it was replacing its president with the executive in charge of overseas operations, as it braces for a massive loss in the fiscal year ending this month.
Sharp said Takashi Okuda, 58 years old, will take the helm April 1, while current president Mikio Katayama, 54, will become chairman without representative rights. He had been president since 2007.
The shuffle came as Sharp has become seriously mired in losses from its LCD panels, TV sets and solar panels.
Last month, it projected a loss of ¥290 billion ($3.50 billion) for the fiscal year ending March 31, which would be the biggest annual loss in the company's 100-year history. The company said losses from TVs and LCD panels used for TVs would result in a tax-related write-down.
Reports of the new leadership prompted Sharp's shares to pull out of a large fall. The stock ended up 4.3% at ¥531 ($6.40) after being down as much as 4.5% earlier Wednesday.
—Jung-Ah Lee in Seoul contributed to this article.Write to Juro Osawa at juro.osawa@dowjones.com
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