Apple has an 'internal' goal of shipping 40 Million iPads this year, which many in the industry think is an unrealistic number even from the market leader. To do that they have flopped around a sizeable chunk of their massive money reserves to the tune of $3.9 - $7.8 Billion Dollars. This has secured a full 60% of the global touch-screen capacity which will intern create a shortage for their competition this year. What looks like simple 'needs-based' spending is more likely a strategic business move by Apple. This indirect control of supply will make it tough for the likes of Motorola, LG, Toshiba and others to hit the demand they expect for the slew of Android tablets set to arrive this year.
Lest you think this is just coincidence, here's a quote from DigiTimes that expresses Apple's past behavior,Furthermore, to add more fuel to the fire, they did the same thing with NAND chips in 2009 to attempt to slow their competition's capacity to compete with them. The side-benefit of this 'strategy' isn't just less parts for their competition to use in their products, but also it will drive the pricing of these parts up as well, making it more expensive for other companies to compete with Apple.Sources from iPad distributors pointed out that in 2010, Apple's order forecasts to its OEM partners were all high and the biggest problem on the supply side was not capacity, but low yields of touch panels. In 2011, Apple's strategy of taking up most of the capacity should help the company quickly expand its sales, while reducing its competitors' shipment growth.
You basically see this same thing in Texas Hold 'Em Poker. The person with the most chips at the table can afford to lose more so they bet more in order to scare others away from the hand. What do you guys think of this? Cheesy or 'just the way to win'?
Source: Engadget via DigiTimes