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Apple corners the touch panel market for 2011

Written by Andre Yoskowitz (Google+) @ 17 Feb 2011 21:49 User comments (9)

Apple corners the touch panel market for 2011 Apple has allegedly cornered the glass capacitive touch panel market, prepaying for 60 percent of the world's entire capacity in 2011.
The move will leave many other companies fighting for the remaining 40 percent, which is expected to cause component shortages throughout the year and delays.

Apple has reportedly prepaid suppliers Wintek and TPK $3.9 billion for long-term contracts, enough money to cover 136 million iPhone displays or 60 million iPad 2 displays.

Gigaom explains that Apple has done this before:

Prepaying for a bulk, long-term contract allows Apple to control pricing, causing scarcity in the market, which raises the prices of remaining component stock. Apple’s pre-bought parts then give it a price advantage when it comes to production costs, and one that could grow as the contract progresses. It’s something Apple’s been known to do in the past, specifically with NAND flash memory in 2005.


Apple can successfully make moves like this because their devices (as history shows) are almost guaranteed to sell, and sell well. iSuppli is expecting 44 million iPad/iPad 2 tablet sales in 2011, after the company sold 14.8 million in 2010. Even the most radical analyst expectations in 2010 had sales at 9 million.

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9 user comments

118.2.2011 3:34

Apple will get the panels at good prices but this wont mean that the prices of the devices will go down. Their profit margin will just improve while others will diminish.

218.2.2011 10:33
lissenup2
Inactive

Corner that market all you want Apple. Only schmucks use touch screen. What an F'ing waste.......just like 3D televisions.

318.2.2011 11:23

Originally posted by lissenup2:
Corner that market all you want Apple. Only schmucks use touch screen. What an F'ing waste.......just like 3D televisions.
You do know that by 2015 you probably won't be able to even find a device that isn't touchscreen or 3D right?

418.2.2011 11:59
Jacob W
Unverified new user

This is hilarious. 

I don't think Apple ordered enough. 

What's say they sell 44 million tablets this year. 

Which means they can sell only 31 million iPhones (or iPod Touches). 

I really don't think that'll be enough. Apple will continue to have shortages due to increased demand. 

But it's a brilliant move on their part. Increased revenue and limiting the competitions successful options. 

518.2.2011 18:06
lissenup2
Inactive

Originally posted by DVDBack23:
Originally posted by lissenup2:
Corner that market all you want Apple. Only schmucks use touch screen. What an F'ing waste.......just like 3D televisions.
You do know that by 2015 you probably won't be able to even find a device that isn't touchscreen or 3D right?

Though I agree with you about the 3D part ONLY becuase the manufacturers are treating it the same as PiP (picture in picture) by just forcing it on the consumer and upping the prices so that the ONLY choice for a tv is with 3D. That doesn't and won't apply to touchscreen. Touch might work well in large environments like airports where passing people just touch away but NEVER EVER will people lift their hands more than they already do from a mouse. I'm assuming this article refers to the "panel" as a monitor so-to-speak.

3D is dead. Always was and always will be unless they can perfect glasses free and make it attractive enough unlike Clash of the Titans, which I heard was the worst 3D. Even then, people just dont care enough. Not my opinion, just a simple fact based off of polls and responses.

So your point is moot regarding the 3D because being just a standard on every television doesn't mean it's wanted or sought after.

618.2.2011 20:08

So it's not always about Apple producing the best product is it Macheads?


Its a lot easier being righteous than right.


DSE VZ300-
Zilog Z80 CPU, 32KB RAM (16K+16K cartridge), video processor 6847, 2KB video RAM, 16 colours (text mode), 5.25" FDD

719.2.2011 12:38

Originally posted by DVDBack23:
Originally posted by lissenup2:
Corner that market all you want Apple. Only schmucks use touch screen. What an F'ing waste.......just like 3D televisions.
You do know that by 2015 you probably won't be able to even find a device that isn't touchscreen or 3D right?
Actuallu DVDBack, I'm sure their will be physical keyboard phone still by 2015, mainly because not everybody is gung-ho on a vitual keyboard, it just probably won't be as available as we see it today, but who knows what the future holds, eh?

Chance prepares the favored mind. Look up once in a while and you might learn something. - BLUEBOY

821.2.2011 16:39

Originally posted by lissenup2:
Originally posted by DVDBack23:
Originally posted by lissenup2:
Corner that market all you want Apple. Only schmucks use touch screen. What an F'ing waste.......just like 3D televisions.
You do know that by 2015 you probably won't be able to even find a device that isn't touchscreen or 3D right?

Though I agree with you about the 3D part ONLY becuase the manufacturers are treating it the same as PiP (picture in picture) by just forcing it on the consumer and upping the prices so that the ONLY choice for a tv is with 3D. That doesn't and won't apply to touchscreen. Touch might work well in large environments like airports where passing people just touch away but NEVER EVER will people lift their hands more than they already do from a mouse. I'm assuming this article refers to the "panel" as a monitor so-to-speak.

3D is dead. Always was and always will be unless they can perfect glasses free and make it attractive enough unlike Clash of the Titans, which I heard was the worst 3D. Even then, people just dont care enough. Not my opinion, just a simple fact based off of polls and responses.

So your point is moot regarding the 3D because being just a standard on every television doesn't mean it's wanted or sought after.

Since standard 3D HDTVs are just regular HDTVs that meed a certain specification that nearly all HDTVs are meeting now, it's just the 3D glasses interface that makes any difference, which is cheap (since it's the glasses that are the major cost).

It is true that only around 10-12% of consumers even seem to care about 3D TV (according to Nielsen research). I even boycott seeing 3D movies in the theaters because it's just a gimmick (the same that's been around in the 80's, albeit w/ better production and especially better w/ CGI). 3D gaming (like some PS3 games can do) is the only thing that REMOTELY interests me about it...feeling like a glasses-wearing tool while playing a game is more acceptable than a glasses-wearing tool watching a movie. ;-)

Oh, and while I agree about 3D TV, CLASH OF THE TITANS is a horrible example because it was 'converted' to pseudo-3D post-production...live action not actually shot w/ 3D cameras.
This message has been edited since its posting. Latest edit was made on 21 Feb 2011 @ 16:40

921.2.2011 18:19

Originally posted by blueboy09:
Originally posted by DVDBack23:
Originally posted by lissenup2:
Corner that market all you want Apple. Only schmucks use touch screen. What an F'ing waste.......just like 3D televisions.
You do know that by 2015 you probably won't be able to even find a device that isn't touchscreen or 3D right?
Actuallu DVDBack, I'm sure their will be physical keyboard phone still by 2015, mainly because not everybody is gung-ho on a vitual keyboard, it just probably won't be as available as we see it today, but who knows what the future holds, eh?
It may have a physical keyboard yes, but it will still have a touchscreen, just like my G2 does currently.

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