Entire high-end handset/tablet component market may soon be completely at Apple’s mercy

“Qualcomm‘s strong report and guidance were largely anticipated. Now that QCOM is a key chip vendor for the iPhone empire, it is getting a major boost from Apple‘s substantial winter share gains,” Tero Kuittinen reports for Forbes.

“It’s hard not to juxtapose this report and guidance with the stiff recent Nvidia warning. Nvidia cited Tegra 2 weakness as one factor for its substantial revenue softness,” Kuittinen reports. “Tegra 2, of course, is the engine of Android dual-core smartphones and tablets that are the most direct rivals of iPhone 4S and iPad2 – from Motorola, LG, Samsung, etc.”

“It is a truism that Apple’s strength is reshaping the entire component market. The topic has been widely discussed for a year or two. But the Qualcomm and Nvidia reports hint that the pace of change is even faster than investors anticipated,” Kuittinen reports. “Very soon the entire high-end handset/tablet component market from camera modules to processors to displays may be completely at Apple’s mercy.”

Read more in the full article here.

MacDailyNews Take: The tide has turned and she is blood red. 🙂

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]


  1. “As a new high-end volume leader (Apple) emerges, … consumers are being locked into a software system gravity well from which few even want to escape.”

    Apple’s products are so far superior to the competition’s, that consumers are quite happy to be “locked-in” to a system that so elegantly serves their needs and desires, and every year delivers things to consumers that the consumers could never have dreamed of owning, or even wanting.

    Apple makes insanely great products, far better than anyone else’s.
    Um, yeah, I’m good right where I am, thank you.

    1. + 1 Million

      Just to nip the the trolls in the bud:

      This isn’t any different than PS3, Xbox or Nintendo locking you in to their formats.

      So Android and anti Apple trolls- Go piss in the wind.

      1. Actually every platform, DOS, Windows, Mac OS X, iOS, Android, Playstation, etc have NATIVE apps that only run on their respective platforms. This is nothing new, just sensationalism.

      2. Fan droids go piss UPwind. It’s disingenuousness at it’s finest not to think Android isn’t its own form of clunky, closed, fragmented and incomplete ecosystem. You want a half-baked phone & tablet, you got it. Now leave us alone as we have a life with Apple stuff that just works.

        1. Once Again Mr. Blood, Yup Yup, I could not agree more with your statement. Some people YOU JUST CAN’T REACH. Ignorant arrogance is the highest form of stupidity & denial = Android users in the corporate realm. May your platform forever remain a fractured cesspool of Droid berries. 😉

  2. This is scary (for the competitors). For Apple to dominate component supply means they get first dibs on stock, can make huge investments with suppliers and drive their costs down significantly.
    This happened with the iPods. Once they started dominating Apple could grab most of the memory market at prices no one else could get.
    The result is that Apple can release cutting edge tech at very competitive prices whilst maintaining their profit margin. The competitors will always play catch up, have to sell at reduced prices to get volume and will have poor margins due to component costs.

    1. It will be even worse because competitors will be sailing into a mine field of patents and end up in the meat grinder of perpetual litigation! 🙂

      Bring it on Android copy cats.

  3. This is a natural consequence of Apple’s tremendous success. The Apple-haters don’t like that – yeah, well, I would like gravity to be weaker so I could dunk a basketball. Doesn’t mean that’s how things are.

  4. People forget that it has been the same before.

    In the 60s and 70s you did not reject orders from GM. Other customers might not be able to get enough product from the better suppliers at times.

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