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.
@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.
@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.
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.
<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.
"So it appears Apple didn't underestimate demand for the iPad. It underestimated its suppliers' production ability"Itseemstobelikethat,althoughIhavemydoubtsaboutit.Itisthesecondtimethatthishappeningsoitlookslikeamarketingtrickratheranunderestimatedemand.
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?.
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!
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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