updated 05:55 pm EDT, Thu April 7, 2011
Company said to have a hold on 60% of the market
Reaffirming earlier reports, ThinkEquity analyst Rajesh Ghai suggests Apple has established a tight grip on component supplies. The company is said to have reserved the majority of touchscreen supplies, reducing the probability of iPad 2 shipping delays. The analyst did suggest, however, that Apple may be facing an "unspectacular" second quarter.
"Apple has already booked approximately 60% of the total available touch panel capacity," Ghai wrote.
Despite a number of reports suggesting Apple's component supplies are not threatened by the disaster in Japan, analysts have disagreed over the impact of rising component prices on the company's margins. Sources allege Apple may have agreed to cover additional costs and pay suppliers in cash to avoid any interruptions in the flow of components.
Ghai notes that Apple may still maintain its overall margins due to the Verizon iPhone 4 launch, as the smartphone is believed to fetch a larger margin than that of Apple's other products. In the long run, an iPhone 5 equipped with LTE or NFC capabilities is expected to help the company maintain its lead in the second half of the year. [via Barron's]