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Orders from Apple control much of touch panel industry

updated 12:10 pm EDT, Wed October 6, 2010

Quartz components buoy TXC

Apple is currently the dominant customer amongst Asian touch panel suppliers, a Digitimes report indicates. "Almost every" touch panel maker capable of mass production is said to be receiving orders from Apple; Wintek and TPK Touch in particular are said to be benefiting from strong iPad sales. Those companies along with Sintek and Cando are all gaining extra capacity this quarter, suggesting that Apple orders may prevent them from suffering a usual seasonal slump.

Shipments for tablets other than the iPad are so far said to be samll. Rather than reflecting poor demand, however, the problem is simply that while orders have been received, bulk shipments are not expected to begin in earnest until 2011. One of the only iPad rivals due on the market in the near future is the Samsung Galaxy Tab.

A relatively new addition to Apple's supplier roster, TXC, is meanwhile said to be riding high on sales of quartz components to the company. Even though it only joined the supply chain in the third quarter, TXC is already estimated to be deriving some 20 percent of its revenue from Apple orders. Aiding in the matter are orders from Qualcomm and Broadcom, which themselves are Apple suppliers.


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By Electronista Staff
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  1. lkrupp

    Junior Member

    Joined: May 2001

    -6

    Monopoly!!!!

    Apple should be FORCED to reduce its demand for touch screens so other competitors can catch up with them. Apple should be required by the government to limit sales of iPads to one-per-day-per-reseller so Samsung can get its tablets to market and compete. It's the only fair thing to do. Competition is good and Apple is just plain unfair in its sales of iPads while the competition languishes, struggling to get something, anything, onto the shelves.

    And you know they will :-<





  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +2

    Apple controls touch panel industry. Good!

    It'll teach all those know-it-all pricks a lesson for laughing at the iPad when it was announced and spouting about how netbooks were better and that Steve Jobs was an idiot for introducing a tablet when there was clearly no consumer demand for them. Apple paid not one lick of attention to those jackasses and quietly took control over the whole tablet market. At the time, companies were not interested in building tablets in quantity until iPad sales went off the chart. Apple had already purchased future inventory and assembly time and nobody cared. Belatedly, companies took notice of that. Now the rival companies are bitching that Apple is hogging inventory related to tablets. Too effing bad. They should have stuck to selling their netbooks.

    Apple has in the past controlled the flash memory market because it's products use the most memory which makes Apple's costs higher. Whenever a company guarantees to buy up a component vendor's entire inventory in advance, that is a good thing for both buyer and seller. Buying up all the needed inventory ahead of time is legal. There is proof that Apple is using up supply and not simply poaching inventory. Apple is generating huge amounts of revenue for those component companies with guaranteed payment. It's first come, first served. Nothing more.

    So for the government to come in and start mandating who is allowed to get supplies is total c***. This is private industry and it doesn't conflict with military needs or anything. No computer company NEEDS to make tablets. I believe Apple has bought out components well into the middle of next year and I hope they take some more of that $46 billion of reserve cash and buy components to last until the end of 2011.

    This is why those so-called tablet rivals are going to get totally screwed with selling prices and production quantities. Apple's iPad will be practically untouchable well into next year. This is a business and only a foolish company gives up the lead to let competitors catch up. Especially arrogant b******* that are merely copycatting Apple's products and then claiming they're better. I'd just like to hear one of those companies come out and admit "Yes, we made a mistake and now we have to follow Apple's lead to sell tablets to consumers." Instead of "Apple just got lucky, but we can build a much better tablet and do it for a lot less." Eff them. They don't deserve Apple giving them the time of day.

  1. wrenchy

    Forum Regular

    Joined: Nov 2009

    -5

    re: Monopoly!!!!


    Apple should make their own hardware. Not contract others to do it. This way they have the ultimate control of what's going on. Samsung makes all their components. Apple is so much more valuable than all other tech companies on the planet so why not make your own components?

  1. mjtomlin

    Fresh-Faced Recruit

    Joined: Oct 1999

    +1

    Re: Monopoly!!!

    Actually, the government cannot control foreign production schedules. It is up to the manufacturers to determine who gets what priority. I hardly doubt the manufacturers of these components really care who they build these products for as long as they keep production at 100% capacity.

    Furthermore, Apple is only trying to fill demand for its products as it tries to fill retail channels for the holiday season. It would be a completely different matter if Apple was over ordering components to corner the market.

    Currently Apple has a sell rate of 4.5 million iPads per quarter. Traditional iPod demand doubles during the holidays, so Apple is probably expecting to sell 7 to 8 million iPads this quarter.

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