1. Paul Daniel Ash's Avatar


    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
    2011-02-17 07:25 PM
  2. Zokunei's Avatar
    Isn't that "monopolizing the market" or something?
    2011-02-17 07:28 PM
  3. Stephen.'s Avatar
    FDR is rolling over in his grave, grasping his Anti-trust bat.
    2011-02-17 07:31 PM
  4. fdw1's Avatar
    Isn't that "monopolizing the market" or something?

    yeah but thats smart business
    2011-02-17 07:32 PM
  5. mmaboi21's Avatar
    yeah but thats smart business
    Very smart
    Nice one apple
    2011-02-17 07:44 PM
  6. ODB25's Avatar
    Actually it's called capitalism
    2011-02-17 07:45 PM
  7. Snozberries's Avatar
    1. = NOM NOM NOM!!
    2. = Securing your future linked with evolving technology

    +2 Apple
    -2 Samsung, Acer, Motorola, RIM and HP!!
    "they're trashing our rights. hack the planet!"
    2011-02-17 07:46 PM
  8. sziklassy's Avatar
    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
    2011-02-17 07:47 PM
  9. Zokunei's Avatar
    Actually it's called capitalism
    Oh no, now we're going to get a capitalism vs. socialism thing happening in this thread -_-
    2011-02-17 07:49 PM
  10. Mookest's Avatar
    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
    2011-02-17 07:51 PM
  11. Go Gators's Avatar
    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.
    2011-02-17 07:53 PM
  12. manickbarry's Avatar
    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.
    2011-02-17 08:00 PM
  13. JoshieVersace's Avatar
    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
    2011-02-17 08:03 PM
  14. creasy425's Avatar
    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
    Every body loves the underdog. Until they're no longer the longshot, then our affections move on to the next hard luck story.
    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
    2011-02-17 08:10 PM
  15. STM127's Avatar
    Isn't that "monopolizing the market" or something?
    In short: No

    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
    Pick Two
    2011-02-17 08:20 PM
  16. Rob2G's Avatar
    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.
    2011-02-17 08:41 PM
  17. j.eck.art.3d's Avatar
    In short: No

    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
    Pick Two
    Well written, couldn't have said it better myself, all the way to the final six words.
    2011-02-17 09:49 PM
  18. bigboyz's Avatar
    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.
    2011-02-17 09:52 PM
  19. mm8's Avatar
    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
    2011-02-17 09:54 PM
  20. jonathan1683's Avatar
    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.
    2011-02-17 10:18 PM
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