Dititimes is reporting that Apple has purchased 60% of the world’s touch screen supply for 2011. This grab will help Apple meet it’s reported 40 million iPad shipments.
Here’s an excerpt:
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. 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 (HP) also competing for related components, second-tier players are already out of the game, the sources noted.
Awhile back Apple COO Tim Cook stated that Apple had spent nearly $4 billion on components to guarantee long-term supply, without actually stating which component(s) they were buying up.
If this is indeed the case, this explains why Apple can deliver a well-built tablet device for $500. The $800 Motorola Xoom tablet proves that few other companies could compete with Apple in terms of price.
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