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)
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.
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.
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!
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?.
"So it appears Apple didn't underestimate demand for the iPad. It underestimated its suppliers' production ability"Itseemstobelikethat,althoughIhavemydoubtsaboutit.Itisthesecondtimethatthishappeningsoitlookslikeamarketingtrickratheranunderestimatedemand.
<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.
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.
@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.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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