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  • Apple Devouring 60% of World Touchscreen Supply


    According to upstream component manufacturers in China, Apple has already placed orders for approximately 60 percent of the world's touch panel supply, setting the stage for major shortages in 2011. The report from DigiTimes says that this strategy will allow Apple to boost its sales in the coming year while simultaneously starving its competitors of supplies.

    Manufacturers are telling DigiTimes that Apple has reserved most of the production capacity of glass capacitive touch panels - like those found on the iPad - from two major suppliers, Wintek and TPK. This is causing RIM, Motorola and Hewlett-Packard to survive on whatever Apple leaves them, and forcing smaller "second-tier" manufacturers to do without. Some, like Samsung and Acer, are going with smaller suppliers, while others have to make do with TFT capacitive panels: basically larger versions of the screens used on some Android phones.

    Apple COO Tim Cook told investors in January that the company had committed $3.9 billion to long-term component contracts. At the time, Morgan Stanley analyst Katy Huberty noted that this amount of money would buy 60 million iPad displays, or 136 million iPhone touchscreens. This latest report is yet another piece of evidence that this is exactly what they've done. With other tablets just entering the market this year, the supply bottleneck means that competitors will have a hard time finding a foothold, almost guaranteeing Apple's continued dominance in a market they already control 95% of.

    Apple's played this kind of hardball in the past: in 2005, they caused a worldwide shortage of NAND flash memory when they bought up 40% of Samsung's entire supply of 4 GB chips. That year, iPod sales surged with the introduction of the iPod nano, which was significantly cheaper than other flash-based media players at the time.

    Source: AppleInsider
    This article was originally published in forum thread: Apple Devouring 60% of World Touchscreen Supply started by Paul Daniel Ash View original post
    Comments 51 Comments
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by STM127 View Post
      I believe you are uneducated.
      Quote Originally Posted by mustard05 View Post
      I agree with you 100%.
      Props for thinking all of education is business and loving Apple?
    1. mustard05's Avatar
      mustard05 -
      Quote Originally Posted by Zokunei View Post
      Props for thinking all of education is business?
      I meant I agree that the poster is not educated in Business. I am in business school and my brother is in Med school. He understands nothing I say, but I understand nothing he says. Just as I'm sure someone in school for art may not understand anything ether of us may say.

      However, I give props to you for assuming. You do know what assuming does don't you?
    1. Zokunei's Avatar
      Zokunei -
      Makes you buy bad stock? Lol
    1. mustard05's Avatar
      mustard05 -
      Quote Originally Posted by Zokunei View Post
      Makes you buy bad stock? Lol
      Haha. I agree 100%
    1. Captinsmooth's Avatar
      Captinsmooth -
      Quote Originally Posted by MetallicaFan1991 View Post
      Fail. Samsung use capacitive SAMOLED screens in there high end Android phones. The AMOLED screen has a built in touchscreen unlike LCD where it's layered. That's how they've achieved a super thin Galaxy S2. Wont be long before Apple have to remove the thinnest smartphone in the world ad.

      I would of gladly thanked your post for the info you provided. If it wasn't for you prefixing your statement with the word "Fail" like a child... Hopefully one day your maturity might catch up with that shine of intelligence you showed in your post.
    1. Lombardo Joe's Avatar
      Lombardo Joe -
      Quote Originally Posted by Zokunei View Post
      Props for thinking all of education is business and loving Apple?
      That made me lawl.
    1. EskimoRuler's Avatar
      EskimoRuler -
      Quote Originally Posted by ODB25 View Post
      Actually it's called capitalism
      Yea not monopoly, there is still other competition right now, so monopoly

      very good strategy by apple
    1. alexevo's Avatar
      alexevo -
      Quote Originally Posted by MetallicaFan1991 View Post
      Fail. Samsung use capacitive SAMOLED screens in there high end Android phones. The AMOLED screen has a built in touchscreen unlike LCD where it's layered. That's how they've achieved a super thin Galaxy S2. Wont be long before Apple have to remove the thinnest smartphone in the world ad.
      If we're going to have a "fail" war then...FAIL on you. SAMOLED has built-in touch screen. AMOLED does not.

      Oh and it's "their" not "there" and have you seen the inside of an iPhone and noticed that each year the battery capacity goes up while the battery's thickness goes down?
    1. Lombardo Joe's Avatar
      Lombardo Joe -
      Quote Originally Posted by alexevo View Post
      If we're going to have a "fail" war then...FAIL on you. SAMOLED has built-in touch screen. AMOLED does not.

      Oh and it's "their" not "there" and have you seen the inside of an iPhone and noticed that each year the battery capacity goes up while the battery's thickness goes down?
      Fail war vetoed.


      Sent from my iPhone using ModMyi
    1. alexevo's Avatar
      alexevo -
      Quote Originally Posted by Lombardo Joe View Post
      Fail war vetoed.


      Sent from my iPhone using ModMyi
      I don't start fail wars...I just end them. ::glasses on David Caruso/Horatio Caine CSI Miami style:: YYYYYYYEEEEAAAAAAAAAHHHHHHH!!!!!!
    1. Lombardo Joe's Avatar
      Lombardo Joe -
      Quote Originally Posted by alexevo View Post
      I don't start fail wars...I just end them. ::glasses on David Caruso/Horatio Caine CSI Miami style:: YYYYYYYEEEEAAAAAAAAAHHHHHHH!!!!!!
      I was having a really stressful day. Thank you for that lawl.