A new report from Taiwan Economic News claims Apple’s main supplier Foxconn has significantly upped its iPad 2 shipment estimates from 14 million to  20 million units for Q3. The report notes this marks a significant “42.8% increase from its original projection” made in July. This confirms previous reports for third quarter estimates we told you about last week.

To put this in perspective, Apple sold 9.25 million units in Q2. It’s of course important to note that shipment forecasts typically increase in anticipation of the holiday shopping season, Hon Hai confirmed…

Although declining to comment on the report, Hon Hai stressed that it is normal to forecast a shipment surge in the third quarter, a booming season for the electronic industry.

Just in time, LG Display has resolved quality issues with the 9.7-inch panels they supply for the iPad 2, which will see production levels return to normal by September, according to a report from Digitimes. We told you last month when Apple turned to Samsung after LD Display reportedly failed to meet Apple’s impact test requirements.

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