Tag Archives: shortage

Amazon Tablet Woes, Not Enough Suppliers For Parts


The newest rumors surrounding Amazon’s upcoming touch-based tablet release are in. In early May, PadGadget reported on the fact that Amazon had ordered 800,000 touch screen tablets from Taiwan-based Quanta. In mid-May, PadGadget reported that not one, but two touch screen tablets were rumored to be released by Amazon. Today, we are reporting on the rumor that touch screen suppliers have trepidations about their ability to fill Amazon’s huge order of approximately 1.5-2 million units by September of this year.

According to DigiTimes, TPK, a major supplier of touch panels, has concerns regarding capacity when it comes to its ability to fulfill Amazon’s wish list. Additionally, Wintek, a current supplier of modules for Apple, Inc. has also noted that, due to a tight production schedule for the latter part of the year, they are unable to confirm that they could accommodate Amazon’s order.

With what has been described as the first potentially viable competitor for the iPad mere months away from hitting the market, Amazon is surely petitioning other companies, ones that are not currently set up for glass touch panels, to make the necessary adjustments to their production line in an effort to fill the orders before time runs out. The momentum of the upcoming touch tablet’s release is exactly what Amazon can capitalize on to build the hype needed to compete with the iPad, but being forced to postpone its release may serve to take the buzz out of the air and leave Amazon’s new tablet nothing more than another notch in Apple’s belt.

Display shortage forces Samsung to lose its competitve edge over the iPad 2

Samsung may be forced to fatten its tablet devices due to a display shortage. The Korean company gleefully proclaimed its revised Galaxy Tab line was thinner than the iPad 2 and repeatedly showcased the tablet's anorexic design.

An unfortunate display shortage has forced the company to drop its thinner GFI display and replace it with a thicker GFF display. This Glass Fiber Filter display is almost 40 percent thicker and has lower light transmittance than its thinner counterpart. Samsung maybe forced to make two variants of the Galaxy Tab, one with the original spec and one with a slightly heftier profile.

Display shortages are an unfortunate part of electronics manufacturing. AMOLED display shortages delayed the full rollout of the several Android handsets inducing the DROID Incredible. More recently, Apple is thought to have cornered the market in tablet displays, forcing manufacturers like RIM and Motorola to scramble for the leftovers.

[Via Electronista]

Display shortage forces Samsung to lose its competitve edge over the iPad 2 originally appeared on TUAW - The Unofficial Apple Weblog on Fri, 10 Jun 2011 13:00:00 EST. Please see our terms for use of feeds.

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Analysts Predict Half-Million iPad Shortage Due To Foxconn Plant Explosion


As we continue to follow up on the impact of the deadly explosion at Foxconn’s manufacturing facility in Chengdu, China on May 20th, we are learning more about production suspension and its affect on iPad 2 production. According to a new analysis from IHS iSuppli, the aftermath of the explosion could result in the production loss of 500,000 iPad 2 units being shipped in the second quarter. Based on IHS iSuppli research, the Chengdu plant manufactures about a half-million units per month and, depending on the length of the investigation and suspension of the plant, things may not get back under way until June, or even later.

As we reported yesterday, Foxconn’s Chengdu plant was only responsible for manufacturing of 25-30% of the tablets during the month of April. Because the production at the Chengdu plant had not yet reached its full potential, the company’s Shenzhen plant is expected to pick up the slack. According to iSuppli.com, Foxconn chairman, Terry Gou was reported as saying the explosion would not affect production in the third quarter. HIS iSuppli believes “There likely will be some impact on production in the second quarter.”

As mentioned, Foxconn’s Shenzhen plant is expected to ramp up production at its already over-worked facility in order to compensate for lost production in Chengdu. The Shenzhen plant has the capacity to manufacture 7.5 million units in the second quarter, which falls short of the company’s total expected output of 7.8-8.1 million, or between 300,000 and 600,000 units, according to iSuppli.com.

Apple, Inc. has been under fire lately because of its relationship with Foxconn after reports have come out that the Shenzhen plant has recorded an unusually high number of suicide rates, possibly due to poor working conditions. Now, that same plant will be responsible for picking up the extra work lost at the Chengdu plant. One has to wonder how this news has affected workers at the plant.

Although Foxconn, in collaboration with Apple, Inc. have worked to improve conditions at the company’s factories, recent events and how Foxconn is handling them, call into question the company’s regulations on workplace safety and how Apple, Inc. will help facilitate better conditions.

 

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Tragedy in Japan hasn’t "meaningfully impacted iPad 2 supply"

The Japanese earthquake had a devastating effect on the people of Japan and temporarily shut down many manufacturing facilites. Analysts speculated this disaster might have produced a shortage of key components used in the electronics manufacturing process, but according to Piper Jaffray analyst Gene Munster, this shortage will have minimal effect on the future supply of the iPad 2.

Munster expects the current shortage of the iPad 2 to continue into the June 2011 quarter, but this shortage is the result of excessive demand, not component production issues. Both the iPad and the iPhone 4 could see, at most, a one to two week delay as a result of earthquake-related shutdowns. This is good news for Apple customers looking to score an iPad 2, especially those international fans who waited in long lines today, only to walk away empty-handed.

Of course, there are many problems Japan faces these days that are much more important than producing computers, but it's good to hear that this isn't another issue to deal with. A resumption of Japanese manufacturing will also help to stimulate the economy in Japan and help rebuild the devastated country.

Tragedy in Japan hasn't "meaningfully impacted iPad 2 supply" originally appeared on TUAW on Fri, 25 Mar 2011 17:00:00 EST. Please see our terms for use of feeds.

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Apple Secures 60% of Touch-Panel Capacity for iPad 2 – Competitors Scramble


One of Apple’s most overlooked strengths is its ability to manage its supply chain, giving it a competitive advantage over rival manufactures.  Apple has demonstrated this strength again, reportedly securing 60% of global touch panel capacity, causing supply constraints for other vendors planning to build tablets.

According to Taiwanese website DigiTimes, Apple has secured touch panel capacity to meet demand for iPads in 2011. The websites’ sources claim Apple placed large orders with all of its iPad suppliers and that OEM vendors are having issues meeting demand due to low yield of touch panels.

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.

DigiTimes’ component supplier sources claim that the shortage is limited to glass capacitive touch panels and that thin-film capacitive touch panels, mainly used in smartphones, are still available.  Most tablet manufacturers prefer not to use thin-film panels as they are less durable and don’t have the same touch characteristics as the more widely used glass displays.

Apple’s move to secure such a large portion of the touch-panel capacity has forced other vendors such as HP and Samsung to get their screens from smaller touch-panel suppliers like Sintek Photronic. According to DigiTimes, “Apple’s strategy of taking up most of the capacity should help the company quickly expand its sales, while reducing its competitors’ shipment growth.”

Apple is expected to release the new iPad 2 within the next 60 days and other rumors point to Apple possibly releasing an iPad 3 as soon as this fall.   To meet the demand for its new tablets, we wouldn’t be surprised to see Apple secure other component capacity, causing further supply chain issues for its competitors.

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Apple to use 60 percent of world touchscreen supply in 2011

Apple is buying up touchscreen displays for the 40 million iPad tablets it intends to sell in 2011, and it has scooped up 60 percent of the global touchscreen inventory. Apple has secured most of the touchscreen displays coming off the production line of panel makers Wintek and TPK and has created a shortage among second-tier tablet makers. The report suggests RIM, HP and Motorola are competing for the remaining inventory, a situation that makes it difficult for smaller manufacturers to compete in this growing market.

The bulk of these displays are glass capacitive panels, similar to the ones currently used in the iPad and the iPhone. As an alternative, manufacturers may be forced to use a thin-film capacitive touchscreen display that provides the same functionality, but is less durable and has a different feel than standard glass displays. Tablet manufacturers are also turning to smaller touch panel makers such as Sintek Photronic and J Touch to fill their display needs.

According to the report, the shortage in inventory for the iPad and iPhone in 2010 can be attributed to a lack of touchscreen displays. Rather than let history repeat itself, Apple has reportedly invested billions into a variety of display manufacturers. Earlier rumors suggest the Cupertino company has invested US$7.8 billion to secure individual display units from Samsung as well as an additional $3.9 billion in pre-payments to Sharp, LG Display and Toshiba Mobile. Combine this current rumor with previous ones, and it is becoming clear that Apple has wisely cornered the market for touchscreen displays.

Apple to use 60 percent of world touchscreen supply in 2011 originally appeared on TUAW on Thu, 17 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

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