Apple Watch: Blame the Displays

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Cryptoman
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Hard to believe
Cryptoman   3/16/2012 11:41:20 AM
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I cannot believe how the shortage in supply of displays come up after the product has been rolled out. Did Apple not check whether the required number of displays could be supplied by the manufacturers in the first place? Apple is supposed to be experienced in all this and should have managed such risks much more professionally and in time. I don't think Apple can make such a big and obvious mistake like that.

I am wondering whether this is a simple case of a marketing move to give the impression that the new iPads are short in supply. Therefore, even the potential customers who cannot decide whether to buy the new iPad jump on board and buy one because they don't want to miss the valuable opportunity due the supply problems. Most people feel privileged by having something that others don't and this is a perfect weakness waiting to be exploited by sales and marketing teams. I wonder if Apple is actually using this consumer psychology with the new product roll out.

FLYINGSCOT
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Supply Network Guru
AMOLED
FLYINGSCOT   3/16/2012 12:42:31 PM
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If new IPAD is an AMOLED display I think Samsung is not selling that business, only the traditional LCD business.

t.alex
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Re: AMOLED
t.alex   3/18/2012 3:00:19 AM
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Yes, it is normal LCD business.

Jacob
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Re: AMOLED
Jacob   3/19/2012 7:27:47 AM
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1 saves

I think Apple may equip with enough number of display panel stocks. Normally there is a large initial pull for almost all Apple products and the same may happen for IPad 3 also. My doubt is for a handy device like IPad, whether such high resolution display is required or not?.

Barbara Jorgensen
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Apple watch
Barbara Jorgensen   3/16/2012 1:11:47 PM
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@Cryptoman: It is widely believed that at least part of this craze has been orchestrated by Apple, but I doubt we will ever know for sure. As for displays, Apple invested more than $3 billion a little over a year ago to secure supply. As a supplier, I wouldn't want to irritate Apple. On the other hand, supplier Samsing and Apple are suing one another. The supply chain makes for strange bedfellows.

syedzunair
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Supply Network Guru
Re: Apple watch
syedzunair   3/17/2012 10:30:18 AM
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<It is widely believed that at least part of this craze has been orchestrated by Apple, but I doubt we will ever know for sure>

Barbara, you are right. We might never know for sure. I think it doesn't seem logical for Apple to restrict supply intentionally. They already have high brand loyalty and most often than not their products do well on the market. With such consumer loyalty a brand would not limit supply intentionally as it will produce some unsatisfied customers. 

Barbara Jorgensen
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Displays
Barbara Jorgensen   3/16/2012 1:14:57 PM
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@SCOT: I believe Samsung is spinning off the LCD busiess but will continue to own it. I'm not sure if the Retina display, which is on the new iPad, is an OLED.  I know the Retina manufacturing technology has to be licensed and there aren't a lot of factories with the capability.

elctrnx_lyf
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Supply Network Guru
Re: Displays
elctrnx_lyf   3/17/2012 1:35:40 AM
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Displays are certainly very challenging to manufacture considering the fact that any defects will immediately be seen through picture quality or through the life of display itself. Anyways I belive LG, Sharp and Samsung together could easily provide the apple with the required volumes of displays.

Nemos
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Supply Network Guru
Behind the wall
Nemos   3/17/2012 6:53:15 PM
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"So it appears Apple didn't underestimate demand for the iPad. It underestimated its suppliers' production ability" It seems to be like that, although I have my doubts about it. It is the second time that this happening so it looks like a marketing trick rather an underestimate demand.

Himanshugupta
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Supply Network Guru
Samsung vs Apple
Himanshugupta   3/19/2012 10:44:44 AM
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It is a case study in itself as how Samsung can keep its two frong strategy; on one hand it is one of the biggest challenger to Apple products and on the other hand the critical supplier. 

I do not know whether Samsung benefitted from being a supplier to Apple as it could get an advance knowledge to what Apple is doing next!

Barbara Jorgensen
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Samsung, Apple and displays
Barbara Jorgensen   3/19/2012 10:53:08 AM
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Readers: I was curious about the display situation so I did some research: Retina ia an Apple trademark, so Apple licenses the manufacturing of the display. I was curious because, if Samsung owned the trademark, why doesn't Samsung capitalize on it? So the answer is Apple outsources to Samsung. It also looks like Samsung is the only producer right now manufacturing volume of the Retina. So this is really good for Samsung, as the display on the iPad is the single most expensive component on the evice. IHS iSuppli breaks down the iPad BOM under Latest Research on this page.

Bolaji Ojo
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Re: Samsung, Apple and displays
Bolaji Ojo   3/19/2012 2:28:55 PM
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Barbara, Part of the challenge suppliers must face is finding volume purchasers for the product. Apple is in a position where it can dominate its supply base because it is a volume buyer. Even if Samsung wants to sell to other companies there aren't that many other volume buyers like Apple around. Paradoxically, Samsung is one of the few companies that has the same volume requirement as Apple. Only a few other companies are out there.

Barbara Jorgensen
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Blogger
Apple watch
Barbara Jorgensen   3/21/2012 12:05:36 PM
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Bolaji--too true. That's the main reason any company that has Apple as a customer shouldn't miss production goals. It hasn't hurt the iPad, though, it is still selling like hotcakes (pun intended)



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