Apple May Cause Touch Panel Shortages for Android Tablets and Others This Year

[dgstorm]

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,

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.

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.

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

 

[GDP]

Probably the reason why the Xoom is so expensive. Good strategy for Apple, bad for anyone that wants an Android tab

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[aRsTwiX]

Probably the reason why the Xoom is so expensive. Good strategy for Apple, bad for anyone that wants an Android tab

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The Xoom isn't even that expensive when you compare it to the 32 GB 3G + Wifi iPad.

And the wif-fi only Xoom is same price...

But anyway... this is bad news for all the new Android tablets everyone is making to try to compete (though the only one I will be checking out is the Xoom).

 

[trestevenson]

They're trying to slow down the inevitable. It upsets me that this is such a good business strategy! In order to offset the impact, couldn't other companies get in the business of manufacturing touchscreens?

 

[bazar6]

They're trying to slow down the inevitable. It upsets me that this is such a good business strategy! In order to offset the impact, couldn't other companies get in the business of manufacturing touchscreens?

They could, but the product would be sub-par. I'll give it to 'em, it's a great strategy, but is it legal? Sounds like they're trying to monopolize the touchscreen industry. I'd like to see how the competition handles this. It doesn't look good for us Android lovers tho

Apple = :icon_evil:

 

[Alastrionia]

As with so many companies and things in general.
Instead of making a superior product and proving it to be such with great sales
Buy up the parts so no one else can something that might beat the pants off ya.

way to go apple. yet another reason why I have never had love for you.

 

[jayman350]

I think this move shows just how worried Apple is about competition. They saw what happened to their market share once android hit the mainstream on the smartphone side of things, and they are trying to slow down the inevitable from happening on the tablet side.

Its much easier to hold onto the largest share of things when you control 60% of a critical component that your opposition needs to use as well.

 

[Stang68]

As long as I get my XOOM next week, I'll be fine

 

[rctp10]

no i can afford to eat lmao if you couldn't tell i was a speaking with a lot of sarcasm. and hell ya i know its a good move for them and yes i know i am being ripped off by verizon but hey cant a man ***** lol

 

[kodiak799]

so you can barely afford to eat, yet you can afford a "Rooted Moto Droid" with what I assume is $80-90 monthly bill? Something doesn't add up.

Where have you been? Living paycheck to paycheck IS the American dream!

In all honesty, sometimes I feel like the $30 a month for data is a waste, even if I can easily afford it. But then I hear stories about families with $400 Verizon bills!!! Footing a $100 a month cell bill for your kid. Mind boggling.

 

[rctp10]

so you can barely afford to eat, yet you can afford a "Rooted Moto Droid" with what I assume is $80-90 monthly bill? Something doesn't add up.

Where have you been? Living paycheck to paycheck IS the American dream!

In all honesty, sometimes I feel like the $30 a month for data is a waste, even if I can easily afford it. But then I hear stories about families with $400 Verizon bills!!! Footing a $100 a month cell bill for your kid. Mind boggling.

Word brother WORD!!!.....i was a verizon rep for 2 years lol and i seen some thousand dollar text bills LMAO.....:icon_ banana:dancedroid

 

[kodiak799]

Word brother WORD!!!.....i was a verizon rep for 2 years lol and i seen some thousand dollar text bills LMAO.....:icon_ banana:dancedroid

Or how about the "old days" when people with horrible credit checks had to plunk down $500 deposit for a service contract and phone? Those people need help.

 

[LoneWolfArcher]

Apple has turned into what it has always claimed to hate: Microsoft.

 

[OneTenderRebel]

wow I have read some extremely disrespectful posts in this thread. I just don't why anyone feels they have the right to call out people for "having bad credit" or being financially strapped. You guys should think about the crap your saying before you post it. You sound extremely ignorant.

 

[OneTenderRebel]

well thankfully those posts are now being cleaned up!