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Apple To Pay More For Parts To Keep iPad Supply Flowing?

by on March 23rd, 2011

Taiwanese part suppliers report that Apple may be accepting price increases to guarantee supply of iPad inventory.

DigiTimes believes that Apple could ship 40 million iPads this year, a number that absorbs about 60% of touch screen panel supply. This puts a tremendous strain on part suppliers.

Touch screen parts suppliers also say price increases could hurt companies building phones and tablets for Android and other platforms too. While Apple typically has advantages in economies of scale, competing companies may also have to accept a lower profit margin.

One of the reasons that the iPad is able to be competitively priced is due to Apple’s long-term supply agreements for displays, memory, and other device components.

The question remains, will Apple absorb these potential price increases or will they affect consumers?

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[DigiTimes]

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Posted under: iPad Rumours