Asian industry sources have suggested that second-grade touch panels that don't pass Apple's quality standards for the iPad 2 are making their way into Chinese "white-box" iPad clones, according to a new report.



From Apple Insider:

A recent report from DigiTimes claimed online retailer Amazon could face difficulty securing display orders for its rumored LCD tablet. Amazon is expected to release the device this fall, but Asian suppliers are reportedly "reluctant" to make commitments, in part because Apple has booked up much of the available production capacity.

The iPad has seen significant demand in China, though Apple has a long way to go in tapping the full potential of the tablet market in the world's most populous country. Apple's launch of the iPad 2 drew substantial lines, which included scalpers hoping to capitalize on the limited supply of the device.

  Chinese manufacturers reportedly using Apple-rejected displays for iPad clones