Sorry!! The article you are trying to read is not available now.

Apple Corners 60% of the World's Touchscreen Supply

Print comment Post Comments
To quote the inimitable Stan Bush: They've got the touch. They've got the power.

Steve Jobs and his merry band of designers have secured roughly 60% of global touch panel capacity, according to DigiTimes. By striving to ship 40 million iPads in 2011, Apple has effectively cornered the market on touchscreens and left its competitors at a major disadvantage.

Tablet computer manufacturers are fighting for the scraps that Apple leaves behind. Research in Motion, Motorola, and Hewlett-Packard are constantly trying to ink deals and establish partnerships with companies like Wintek and TPK -- that is, if Cupertino hasn't already gotten there first. As the major players swoop in to claim suppliers left unclaimed, "second-tier players are already out of the game," according to DigiTimes' sources.

The site elaborates:

"Sources from iPad distributors pointed out that in 2010, Apple's order forecasts to its OEM partners were all high and the biggest problem on the supply side was not capacity, but low yields of touch panels. In 2011, Apple's strategy of taking up most of the capacity should help the company quickly expand its sales, while reducing its competitors' shipment growth."

In Apple's wake, companies like Samsung, Acer, and HP are left to turn to smaller touchscreen suppliers -- thereby possibly limiting output.

In other words, not only does the iPad currently sit as King of the Tablet Computer, Apple's made it extremely difficult for anyone else to dethrone it.

(See also: INFOGRAPHIC: Apple iPad, Motorola Xoom, and Other Tablets Compared and Motorola Xoom's Demise Against Apple Briefly Ensured)

For an investment angle on these and many more tech stocks, take a FREE trial to the TechStrat Report by Sean Udall.
POSITION:  No positions in stocks mentioned.