According to a new article from DigiTimes, Apple has secured 60% of the world’s touch panel display capacity, thereby limiting its competitors’ supply. According to sources from upstream component makers, in order for Apple to meet its internal goal of 40 million iPads shipped in 2011, it has locked up the capacity of major touch panel makers such as Wintek and TPK.

Competing for the remaining capacity are RIM, Motorola and HP, leaving second-tier tablet makers squeezed out. DigiTimes’ sources indicated that glass capacitive panels was the component they were unable to acquire. “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,” DigiTimes reported.

The business of making technology a success is not simply about stunning design. It’s also being savvy enough to ensure that you have enough supply to meet demand, and if you can put the pressure on your competitors at the same time, even better. Apple has learned from its history, having experienced shortages and longer wait times than it wanted for the iPad during its first year. If that reported internal goal of 40 million iPads in 2011 is accurate, it should be a banner year.

Article Via SF Gate

Comments are closed.