RUMOR: Apple secures 60% of global touch panel capacity, causing serious shortages

“In order to achieve its internal goal of shipping 40 million iPad products in 2011, Apple has occupied close to 60% of the global touch panel capacity causing tight supply among Apple’s competitors, according to sources from upstream component makers,” Yenting Chen, Rebecca Kuo, and Joseph Tsai report for DigiTimes.

“Sources from tablet PC makers also pointed out that the component shortage is causing their shipment volumes to be unable to catch up with their orders, especially for second-tier players,” Chen, Kuo, and Tsai report. “Touch panels are currently suffering the most serious shortage due to Apple holding control over the capacity of major touch panel makers such as Wintek and TPK, and with US-based RIM, Motorola and Hewlett-Packard also competing for related components, second-tier players are already out of the game, the sources noted.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]


      1. I think part of the shortage is due to total production capacity of the industry. If Apple wants a certain type of component and plans to sell 40 million, that’s what the suppliers are going to gear up their factories to manufacture, at the expense of other types.

  1. Is it really “due to Apple holding control over the capacity of major touch panel” or is it no one wants to buy iTurds or iCrap? This is Apple’s time to shine and many markets are theirs for the taking because Apple innovation, quality and ecosystem is what people want!

  2. This is total bullshit. Apple prepaid for touch panels last year for delivery this year and next. Apple’s suppliers took the billions and built new panel factories. Apple pre-bought new production that wouldn’t be available this year if Apple hadn’t paid for factory expansion/building.

    Apple isn’t causing any panel shortage.

      1. The percentages apply to different bases. Touch panels are required to produce phones, right?

        So if other phone makers require (say) 35% of all touch panel capacity, and Apple takes 60% of total capacity, very little remains for other uses … such as new tablet manufacturers.

  3. Oh, boo-f’in-hoo. I’ll feel bad when “innovation” from other companies do not mirror what Apple is doing.

    Sure, there was a tablet market before Apple. It was doing so well, too. People are deluding themselves if they believe there was some sort of consumer tablet market before Apple showed the entire world what to do. That said, they deserve the quality parts. Let all the copiers get the copy parts.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.