Apple's release of the iPad 3 is likely to be delayed until 2012 because of supply chain and technical challenges.
The device's supply schedule for the second half of 2011 has been cancelled by Apple, according to the Taiwan-based DigiTimes.
Apple was expected to launch the iPad 3 in the second half of 2011 with a supply volume of 1.5 million to two million units in the third quarter and five to six million in the fourth quarter.
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The report says the delay is due to a lack of availability of the high resolution Retina displays to be used in the iPad 3 that were first seen with the release of the iPhone 4 in 2010.
DigiTimes cites sources as saying Apple's main suppliers Samsung Electronics and LG Display are unable to meet demand, while other suppliers such as Sharp are asking higher prices.
The Retina displays will give the iPad 3's 9.7-inch panel a resolution of 2,048 x 1,536 pixels compared with the current iPad screen resolution of 1024×768.
A higher-resolution iPad would also require a larger backlight source and "a single edge light bar is hardly able to reach satisfaction levels," making a 2012 launch more likely, the report says.
Whenever the iPad 3 launches, the new high-resolution screen could be easier to read due to a newly patented fingerprint-killing process, according to other reports.
The patented process creates an oleophobic (grease-resistant) coating which is likely to be used for future iPads and iPhones.