Apple grabs 60% of touch panel capacity, hurting supply for others

By on February 17, 2011, 2:31 PM
Apple has an internal goal of shipping 40 million iPad products this year. To manufacture all of them, the company has occupied close to 60% of the global touch panel capacity, according to sources from upstream component makers for tablets cited by DigiTimes.

Touch panels are thus suffering the most serious shortage, which has hurt supply for Apple's competitors since the component shortage means shipment volumes are unable to keep up with orders, especially for second-tier players. Apple is holding control over the capacity of major touch panel makers such as Wintek and TPK.

RIM, Motorola, and HP are also competing for related components, leaving out second-tier players. As a result, Samsung Electronics, Acer, and HP have all started turning to smaller touch screen suppliers such as Sintek Photronic, Egalax-empia Technology, AimCore Technology, and J Touch.

Apple's iPad 2 entered production earlier this month. There are no details as to when the new version of the device might be hitting store shelves or what the pricing will be.

The company hasn't even announced the device yet. In the meantime, it is still selling the original iPad. In this respect, Samsung has beat Apple to the punch by announcing the successor to the original Galaxy Tab: the Galaxy Tab 10.1.





User Comments: 11

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Guest said:

how much Apple do you get today, other than the logo ? does apple even make their own devices today ? and is ios really that expensive as they want ppl to pay for the phones ?

matrix86 matrix86 said:

You selfish bastards. I hope the iPad 2 flops and they lose money (doubt that'll happen, though). Maybe it's just me, but I think all these companies should have some sort of limit on how many screens it's buyers can buy to prevent this from happening again. But I guess that's business for ya...

princeton princeton said:

matrix86 said:

You selfish bastards. I hope the iPad 2 flops and they lose money (doubt that'll happen, though). Maybe it's just me, but I think all these companies should have some sort of limit on how many screens it's buyers can buy to prevent this from happening again. But I guess that's business for ya...

How is it selfish? Any other company could have ordered that many, they just didn't.

SNGX1275 SNGX1275, TS Forces Special, said:

I actually agree with princeton. The headline was written to get attention, but if you read the rest it says RIM, Motorola, and HP are also ordering a lot, which is hurting the supply available for 2nd tier people.

It should only be illegal if the supplier/suppliers sold to only one or two companies at some clearly anticompetitive price. I don't think that is happening here - its just a simple matter of your best customers get priority. Second tier is second tier for a reason.

Guest said:

That's one of the most stupid things I have ever heard.. and as for 'I hope the iPad 2 fails' - you don't even know what it has to offer yet!?.. how can you hate against something that you have no idea what it does. If Apple had a clear success with the first iPad because it was so popular then bringing a better one can only be a good thing? Especially for those of us interested in consumer electronics in general - and not brand specific fanboys like yourself.

Guest said:

See, this is why we should vote socialist. Darn them capitalists. *raises flameshield*

princeton princeton said:

Guest said:

See, this is why we should vote socialist. Darn them capitalists. *raises flameshield*

Damn your 1500 degree protection. But you see benzene, it burns at twice that :P

Lurker101 said:

I'm not exactly an Apple fan (I'd actually pay good money to watch Steve Jobs skinned alive and then set on fire), but I actually see this as good news. It means there could be a sensible amount of iPad 2 devices ready for shipping at launch, instead of the usual release day shortage, causing people to sell them on eBay, et. al. for extortionate rate, and it also forces a boost for smaller touchscreen manufacturers, which could result in long term contracts with other device makers, company expansions and as a direct result, more job openings in these smaller companies.

yRaz yRaz said:

Lurker101 said:

I'm not exactly an Apple fan (I'd actually pay good money to watch Steve Jobs skinned alive and then set on fire), but I actually see this as good news.

Don't you think it would make sense to set him on fire while skinning him alive? Surely the fire would cauterize the wound before it could bleed therefore increasing and extending his pain.

Guest said:

Hmm, this is not surprising, just reveal the expanding use of iPad and iPhone!

Great, I believe the Apple will expand into more, just like the Mac App Store now is permeate through to all the Mac users, you can easily find the apps you want such as iFunia video converter pro in the Mac.

matrix86 matrix86 said:

Guest said:

and not brand specific fanboys like yourself.

You don't even know me and you're calling me a fanboi? How first grade of you. The reason I don't buy a Mac is because it's overpriced and I find the Windows OS easier to use (personal opinion). I had an iPod and LOVED IT! I like the look and feel of the iPhone and when comparing iOS vs Android, I always say "they don't seem any different (functionality wise), I like them both." True, I don't like Steve Jobs and I think Apple is to restrictive, but that doesn't mean I hate their products (minus the iPad which to me was a piece of junk...again, opinion). And yes, I know the iPad 2 will not fail (you clearly didn't read what was in the parentheses after that). I just don't think any company should be able to buy more than 50%, and even that seems slightly unfair. Apple has been the biggest producer of tablets, but now we're seeing a lot of other companies joining in the game.

Now I know business isn't fair, and neither is life, but that's just how I see it. It's hard to have competition when someone tries to take as much as they can. The load needs to be distributed evenly and fairly.

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