Tablet component suppliers concerned about Apple iPad’s dominance

“Several Taiwan-based tablet PC component suppliers are turning concerned that their orders are heavily accumulated on Apple, as other tablet PC players are turning conservative about their tablet PC sales and are only placing small volume orders,” Yenting Chen and Joseph Tsai report for DigiTimes. “The component suppliers are also concerned that if Apple is the only player propping up the tablet PC industry, the market scale may reach its cap in 2012.”

“iPad’s strong sales are still helping [iPad component] suppliers to fully utilize production capacity, since a very high proportion of orders are contributed by Apple; therefore, if Apple’s iPad sales reach their limit, these players will start to face a crisis,” Chen and Tsai report. “As a result, many of the upstream suppliers are turning aggressively to cooperate with the second- and third-largest tablet PC players.”

Read more in the full article here.

MacDailyNews Take: Apple’s not “propping up” the tablet PC industry. There is no “tablet PC” industry of which to speak. Apple created the iPad industry. Smart component suppliers are focused on doing everything in their power to make Tim Cook happy, not trying to prop up also-ran Apple cloners.

[Attribution: TUAW. Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]

10 Comments

  1. MDN, don’t you know that it is the politically correct thing to give all players a trophy? If only one were declared the winner, it might hurt the feelings of the losers. “From each according to his ability…”

  2. What they fail to realize in their short-sightedness is that IF the market is saturated in 2012, you will start seeing people that bought the original iPad (and later the iPad2’ers) replace their old iPad with the current model. Just like with desktops and laptops, every 2-4 years people replace their systems with a newer model.

    Duh.

  3. Since suppliers earn only marginal profits on Apple’s orders — thanks to exclusively low price their offer for both goods and services — they can not really “cooperate” much with small customers. They have to earn money somewhere, so they charge more for these additional small orders.

  4. What they don’t realize is that iPad orders are eclipsing the orders they had for netbooks just a couple of years ago.

    Of course, that doesn’t help the keyboard component suppliers . . . .

  5. “if Apple’s iPad sales reach their limit”… Just when will that be ? the proverbial blizzard in hades ? iPad sales will reach their limit when everyone on this planet has one (or maybe two). I call FUD because no suppliers are turning to PC tablet makers if they can get a contract to furnish Apple even the smallest parts, and PC tablet makers are not making any real sales…

  6. And just what parts are they talking about. Except for the physical enclosure, the only part that isn’t also a smartphone part is the display. However, the other smartphone makers keep increasing the size of their displays so what’s the problem.

  7. “most notebook vendors have turned to placing orders with second-tier component suppliers”

    Looks to me like ASUS and others didn’t learn their lesson from the motherboard capacitor fiasco. Those 2nd tier components can come back to bite you in the a$$.

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