Apple is known for excellent quality and according to the latest report, the panels that do not pass the quality standards are sold to the iPad clones. For example: There are myriad clones running Android 2.2 (say, T10) that are being sold in China and shipped to other parts of the world where they are sold at half the price of base iPad 2.
The reports also say that Apple is now consuming more than 60 percent of total touch screens and the screen manufactures are have a tough time meeting the demands of Apple. In fact, Amazon, which is also busily engrossed in churning out its own tablet is facing difficulty in sourcing its screen. [via appleinsider]
Keep in mind that it does not include the excellent iPad 2 alternatives.