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Old Mar 23, 2011, 12:54 PM   #1
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Apple Considering Paying Suppliers More to Ensure Touch Panel Supplies?






DigiTimes reports that Apple is considering offering to increase the price it is willing to pay for touch panel supplies in order to secure a steady flow of the components for its iOS devices as suppliers struggle to recover from the Japanese earthquake. With Apple said to already be soaking up 60% of the entire touch panel market, the move could significantly increase pressure on smaller competitors trying to lock in their own supplies. In particular, Apple is looking to Taiwan-based suppliers whose importance has increased with a number of Japanese plants going offline or operating with reduced production.
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In order to secure sufficient supply of touch panels used in the iPad and iPhone, Apple has talked with Taiwan-based makers, considering some room for them to hike quotes, according to these makers.

With Apple's capacity, It is a reasonable strategy from Apple to allow suppliers to hike quotes, and it will be a great help to the overall supply chain, even just for the short term, but will increase pressure to other vendors for tablet PCs and smartphone, touch panel makers believed.
While a handful of components have been determined to be directly vulnerable to shortages caused by the earthquake and related disasters, Apple's manufacturing partners have been said to have several weeks' worth of supplies already on hand and Apple's supply agreements and market position give it significant leverage for obtaining supplies going forward. But given the complex international nature of the electronics production business and Apple's penchant for maintaining lean manufacturing processes, any disruption in the supply chain could have significant effects.

Article Link: Apple Considering Paying Suppliers More to Ensure Touch Panel Supplies?
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Old Mar 23, 2011, 12:56 PM   #2
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what a crazy idea
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Old Mar 23, 2011, 12:56 PM   #3
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I still haven't seen an iPad 2 in person. Really want to try one out.
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Old Mar 23, 2011, 12:59 PM   #4
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You guys could start making them in America
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Old Mar 23, 2011, 01:01 PM   #5
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Originally Posted by q64ceo View Post
You guys could start making them in America
This would cost more for Apple, but considering they're willing to pay suppliers more to ensure production, I think it wouldn't be such a bad idea if a California company actually produced product in California as well
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Old Mar 23, 2011, 01:02 PM   #6
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You guys could start making them in America
They would still be 'foreign made'.
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Old Mar 23, 2011, 01:02 PM   #7
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The recent disaster and people wanting more touch panels is putting Apple in an interesting spot. I'm sure they will pull through though!
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Old Mar 23, 2011, 01:03 PM   #8
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They would still be 'foreign made'.
Ha ha! I remember our conversation about US production of Apple products Good Stuff!
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Old Mar 23, 2011, 01:08 PM   #9
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Originally Posted by tbobmccoy View Post
This would cost more for Apple, but considering they're willing to pay suppliers more to ensure production, I think it wouldn't be such a bad idea if a California company actually produced product in California as well
with all due respect.......... your 2011 ipad will arrive in 2013 costing $2000 more, after huge lobbying with KFC eating trade union members



ps- try south africa, it shall be 2x worse..........

pps- maybe foxconn's brazil plant is THE only answer?

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Old Mar 23, 2011, 01:09 PM   #10
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Old Mar 23, 2011, 01:40 PM   #11
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I wonder what's going to happen to the companies with less clout and cash as Apple to keep the supply chain going?
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Old Mar 23, 2011, 01:43 PM   #12
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"Designed by Apple in California. Assembled in the USA."

I can only dream.
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Old Mar 23, 2011, 01:43 PM   #13
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I wonder what's going to happen to the companies with less clout and cash as Apple to keep the supply chain going?
Right on. It's going to be a nice subtle stab to other panel buyers.
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Old Mar 23, 2011, 01:45 PM   #14
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Location: Canada, eh?
So, is this considered a legitimate business move, or might this be seen as anti-competitive bullying?

Being the biggest (and richest) player out there, offering to pay more means hiking up the prices and locking out the smaller players.
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Old Mar 23, 2011, 02:12 PM   #15
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In The South U S A

Apple could use more U.S. companies components. Also buid it in South U.S. Say we will build in the U.S. if we have complete control (IE no Unions) or any "crazy"environmental or other regulation. Toyo, Hyundai others build in the non-union South. Southern states would also give big tax breaks to lure Apple.
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Old Mar 23, 2011, 02:14 PM   #16
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Originally Posted by thisisahughes View Post
"Designed by Apple in California. Assembled in the USA."

I can only dream.
You're not the only one who feels this way, my friend!! I am always willing to pay a premium for quality, which along with the customer support experience, is why I buy Apple. I would likewise be willing to pay for quality, American-made products, knowing that I'm keeping my fellow neighbors healthy as well.
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Old Mar 23, 2011, 02:20 PM   #17
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I wonder what's going to happen to the companies with less clout and cash as Apple to keep the supply chain going?
They're going to pay more for parts and see their margins erode as they hold down their pricing to remain competitive with Apple.
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Old Mar 23, 2011, 02:47 PM   #18
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Apple will pass the cost on to the consumer, so as to maintain their profit margins.

I'm glad I got mine before they increase the price.
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Old Mar 23, 2011, 02:49 PM   #19
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Originally Posted by thisisahughes View Post
"Designed by Apple in California. Assembled in the USA."

I can only dream.
Your dream can come true for the low, low price of $1995.00!!

Gotta pay the Unions ya know!
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Old Mar 23, 2011, 02:50 PM   #20
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Hey, when you have the leverage, use it.
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Old Mar 23, 2011, 02:57 PM   #21
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Originally Posted by g-boac View Post
You're not the only one who feels this way, my friend!! I am always willing to pay a premium for quality, which along with the customer support experience, is why I buy Apple. I would likewise be willing to pay for quality, American-made products, knowing that I'm keeping my fellow neighbors healthy as well.
And even then, the premium wouldn't be so bad when we are providing more jobs, thus getting or economy back on track and people making more money.
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Old Mar 23, 2011, 02:59 PM   #22
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I wonder what's going to happen to the companies with less clout and cash as Apple to keep the supply chain going?
They will continue to make crappy honeycomb hideout tablets.
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Old Mar 23, 2011, 03:03 PM   #23
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+1. Unionized labor isn't that expensive and I know I'd feel better knowing that my purchase wasn't responsible for a rash of suicides. Do you actually feel good knowing that your purchase is responsible for a company installing an anti-suicide net?
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Originally Posted by thisisahughes View Post
"Designed by Apple in California. Assembled in the USA."

I can only dream.
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Old Mar 23, 2011, 03:03 PM   #24
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I still haven't seen an iPad 2 in person. Really want to try one out.
it's beyond awesomeness
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Old Mar 23, 2011, 03:09 PM   #25
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Couldn't a story like this be used by the manufacturers to raise their prices?
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