Is Sharp out as an iPad 3 display manufacturer?

Reports that permeated the iPad 3 rumor mill this morning peg iPad 3 manufacturers Foxconn Electronics and Pegatron Technology as having begun iPad 3 production with a March launch on the horizon.

Those reports cited earlier rumors that Sharp was a main manufacturer of the high-density displays used in the iPad 3, which have now been challenged by a new rumor that Sharp did not meet Apple's specifications in its initial run of displays.

The site Patently Apple has published a report found on Korean industry site Electronic Times Internet News that claims Sharp is out of the iPad 3 manufacturing process.

Display duties will now fall entirely to LG Display and Samsung Electronics. Earlier rumors suggested that Sharp's IGZO technology would replace the iPad's IPS display in the iPad 3. Now, if this report holds up, it appears the IGZO technology will not, in fact, be included in the iPad 3.

According to the Electronic Times Internet News report, Apple plans on ordering upward of 65 million display units for 2012, with over 5 million of those already being on their way to Foxconn and Pegatron for the rumored March launch.

This year has been particularly leaky in the supply chain department, especially with the iPad 3 production rumors. As far as you and I are concerned, who makes the iPad 3 display is not nearly as important as whether or not it's a Retina Display (which seems to be a lock at this point).

As spring approaches we will certainly see many more reports originating from all kinds of unnamed sources around the world that claim to have knowledge of Apple's production plans. The best thing to keep in mind when reading any of these is to remember that they are still rumors. Basing your assumptions (or buying habits) on anything other than official Apple statements could turn out badly.

What do you think of Apple rumors, fun to read or annoying to sift through? Let me know your thoughts in the comments!