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LG has lost the bulk of a major Apple contract to produce display screens for the iPad 2 because of constant defects in the parts delivered to Apple.According to Apple the LG manufactured screens turned yellow around the edges in what Apple COO Tim Cook said had caused “the mother of all backlogs” during a recent earnings call.

The bulk of the contract is now being delivered by Samsung who already shipped four million of the 9.7-inch panels, whereas LG reports shipped only 800,000 after being forced to halt production to address the issues.

Digitimes is reporting that the screen yellowing, which sees light leak from the edges of the display when darker objects are displayed, reported by some users is attributable to the panels made by LG.

The DigiTimes report claims that LG displays will make a return to the supply line in the second quarter.

Apple shifted 3.2m iPad units during the first three months of 2011, but massive backlogs have prevented the company achieving its full potential.

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