Apple Price Increase Guaranteed Touch Panel Supply

Taiwan’s Electronics Times reported that due to the suspension of production due to a number of suppliers affected by the earthquake in Japan, Apple is ensuring that the iPad and iPhone production lines have sufficient and stable touch panel supplies. They are negotiating with Taiwanese manufacturers to consider raising their prices.

Taking into account Apple's huge demand and current supply conditions, allowing suppliers to raise prices can be justified. Apple's quotations will benefit the entire supply chain, and even if it is only short-term, suppliers will be delighted.

However, because Apple has already occupied 60% of the global demand for touch panels, if they raise the quotation, other small and medium-sized manufacturers will find it harder to get touch panel supplies at a more favorable price. In the competition of tablet PCs and touch-screen smart phones, Apple's costs may rise and fall.