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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...
02-17-2011, 10:25 AM #1
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.
02-17-2011, 10:28 AM #2
Isn't that "monopolizing the market" or something?
02-17-2011, 10:31 AM #3
FDR is rolling over in his grave, grasping his Anti-trust bat.
02-17-2011, 10:32 AM #4
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02-17-2011, 10:44 AM #5
02-17-2011, 10:45 AM #6
Actually it's called capitalism
02-17-2011, 10:46 AM #7
1. = NOM NOM NOM!!
2. = Securing your future linked with evolving technology
-2 Samsung, Acer, Motorola, RIM and HP!!"they're trashing our rights. hack the planet!"
02-17-2011, 10:47 AM #8
I am not sure this can be called a monolpoly. They paid for x number of displays, and will be receiving x number. If that number happens to be 60% of what can be produced, so be it. Unless I am reading this wrong, they aren't specifically doing this to try and block competition, which is what an antitrust issue ACTUALLY is...------------------------------------------------------------------------------------------------------------------------------------------------------------------
I once prayed to God for an iPhone, but quickly found out He didn't work that way...so I stole an iPhone and prayed for His forgiveness.
A dog is the only thing on earth that loves you more than you love yourself. - Josh Billings
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02-17-2011, 10:49 AM #9
02-17-2011, 10:51 AM #10
Apple is like a friend who is a total A Hole to everyone, but you are still friends with him cus he has a bunch of cool stuff.
Gratz apple on Bullying out the competition by taking all the supply's
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02-17-2011, 10:53 AM #11
Now that there is real competition coming Apple's way, this is how they deal with it. Rather than making a better product and removing all of their stupid restrictions so more people would want to buy their idevices, they're choosing to double down with their arrogance and force people to buy Apple because the much better Android products will be out of stock. Typical Apple BS that a lot of people are starting to get real sick of.
02-17-2011, 11:00 AM #12
Smart apple well done
I wish I had a miniature elephant that fit in the palm of my hand. I would pick him up and he'd lift up his trunk and stand on his back legs and say PRRRRRRRRRRRRMMMMMMMMMPPPPPPPPPHHHHHHHH and I would say yes little elephant i love you too.
02-17-2011, 11:03 AM #13
Funny how everyone initially loved Apple because they were the little guy and cheered them on to take down the evil empire (Microsoft). Now look what is happening. Apple very well may be worse than Microsoft with their recent tactics. The writing is on the wall
This time 5 years from now we will probably be cheering on Linux or Google to take down the company we built up and love to hate
02-17-2011, 11:10 AM #14
Neo Style by k.nitsua....early front runner for THEME OF THE YEAR
Now in a dead heat with liveOS c/o bluemetal....
Let us all welcome the newest fighter to the TOTY ring...iNavHD c/o reeco
02-17-2011, 11:20 AM #15
In long: This move to me seems to me like a very powerful motivator for both manufactures and suppliers. Manufactures who find themselves struggling for suppliers this year might look for a new innovative screen technology. Suppliers who aren't prominent have the opportunity to step up production, quality, etc and become a major player. Either way we as consumers of the product hopefully "win" as we see this competition for our dollar translate into better products or cheaper prices.
Cheap, Fast, and Quality
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02-17-2011, 11:41 AM #16
Apple not doing anything wrong. It's not apples fault the demand from the idevice markets needs 60% of the worlds touch screen supply's.
02-17-2011, 12:49 PM #17
02-17-2011, 12:52 PM #18
You can't monopolize a component, that is utilized as a "part" of a finished product. You can however have a monopoly on the finished product...in this case a TABLET. Apple does not have a monopoly, as many tablets are due this year.
02-17-2011, 12:54 PM #19
looks like Wintek stock was at $25 last year and now less then a year is at $62....hmmmm......I should have bought thousands of shares instead of spending days trying to unlock/jailbreak...wasting my time
02-17-2011, 01:18 PM #20
suppliers will just boost up their production or make more manufacturing plants/expand. They wont sit there and say no to new orders and lose all the potential profits.