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Cover lens supply key for 2011 iPad 2 shipment goal
A report out of Digitimes suggests the supply of cover lenses for touch panel modules may influence Apple's future production rate of its popular iPad 2. Sales of the iPad 2 have exceeded expectation, and Apple reportedly shipped 2.4 to 2.5 million tablets in March alone. Conservative estimates predict Apple may ship over 4 million units per month in the upcoming financial quarter. Asian supply sources hint that the ability of Apple to meet this growing demand for its popular tablet device hinges on the ability of manufacturers to produce this necessary lens component. Currently, Taiwan-based TPK Touch Solutions, G-Tech Optoelectronics and more are expanding their manufacturing capacity and ramping up production of these cover lenses. In the end, this component may not delay production of the iPad 2, but it does reveal the struggle parts manufacturers encounter when a new device taxes their production line.
Apple could agree to component price hike to secure touchscreens
Contending with seemingly insatiable demand for its new iPad 2, Apple is pondering paying higher prices for touch panel components, according to a report from DigiTimes on Wednesday. Manufacturers in Taiwan claim Apple is more open to certain price hikes during negotiations as the California company tries to secure a sufficient supply of components for its popular touchscreen products. Higher component prices, in the short term, will shrink Apple's gross margins on three of its hottest selling products: the iPad, iPhone and iPod touch. But securing adequate availability of touch panels should help the company relieve some of the constraints in its global supply chain. Such a deal would also put pressure on other consumer electronics companies to pay more for the components they need to build competing tablet computers and smartphones. Apple currently faces incredible pressure from consumers and shareholders to address bottlenecks in the supply chain for its successful families of touch panel devices. Lead times for the new iPad 2 ballooned to 4–5 weeks in its first few days on the US market, and the tablet goes on sale to a broader, global market this Friday. Apple reportedly expects to ship 40 million iPads in 2011. The company is also expected to launch its next generation iPhone later this year. The earthquake and tsunami that struck Japan earlier this month further fueled concerns over possible touch panel supply shortages. According to AppleInsider, a recent report suggested Foxconn, Apple's manufacturing partner, has only two or three weeks' worth of touch panels stockpiled. If the situation in Japan doesn't improve, Foxconn could deplete its stock of touch panel components. Despite these concerns, DigiTimes believes Apple is well positioned to weather a shortage of touch panels. Apple has already booked an estimated 60 percent of the world's touch panel output capacity. As the global market leader in touchscreen devices, Apple will continue to control the lion's share of the world's touch panel supply and enjoy lower component pricing than its competition. "Supply for touch panel[s]...will be more smooth for Apple," concluded DigiTimes. [via AppleInsider]
Wii shortage finally nearing its end, says GameStop exec
We never, ever thought it'd take this long, but we've finally received a sign that the Wii supply and demand might be nearing some equilibrium, almost two and a half years later. According to GameStop SVP Bob McKenzie, the retailer now has a couple weeks' worth of supply, which seems to be fairly unprecedented given the numerous shortage stories we've heard over the console's 852-day lifespan. That's not to say the console's popularity is waning -- it's still topping US sales charts, and according to NPD, pushed over 750,000 units last month. So now that one shortage might be nearing its end, how about Nintendo find a way to keep Wii Fit in stock?[Via Joystiq]Read - McKenzie on Wii supplyRead - February NPD figures
Nintendo cranking on Wii production for the holidays, still making no promises
Hard to believe, nay, mind-boggling, that two full years after Nintendo launched the Wii in America we're still looking at shortages. In the midst of "economic turmoil," no less. Back in April, Reggie Fils-Aime proclaimed that he was "passionately upset" about the difficulty consumers were having in finding Wii consoles, and now that yet another holiday season is upon us, it's clear that he's made some changes. In a recent interview with the Los Angeles Times, he admitted that Wii production was up from 1.6 million units per month (during this time last year) to 2.4 million units per month (now), though he wouldn't go so far as to say you'd have an easy time finding one. In fact, he stated that "once you see [a Wii console] on the shelf, you ought to buy it." Also of note, those still scouting a Wii Fit may be in luck, as the Big N could decide to ship more units to America rather than Europe now that the greenback is gaining strength versus the euro. Good luck hunting -- we'd recommend you start looking, um, yesterday.Update: Looks like Ninty's already turning up the burners -- that's a heretofore-unbelievable shot of Wii stock at reader Roberto's local Best Buy in West Paterson, New Jersey.[Via GameDaily]Read - Reggie Fils-Aime interviewRead - Analyst's take Wii Fit shipments
Guts of BlackBerry Bold found to cost $170
Not that it really matters to consumers one way or another -- after all, if you want a Bold, you'll pay the asking price -- but recent analysis by research firm iSuppli has found that parts and materials used to make the device "cost $158.16, and that assembly and testing add another $11.25, for a total cost of $169.41." Just for comparison, the Curve costs a cool $103 to build, and assuming RIM can sell the Bold to carriers at around $350, it'll net a gross margin of around 45% before R&D costs, software, marketing, shipping and freebies given to obscenely wealthy celebs are taken into account. The report (er, the part about the nice margins) should come as welcome news to shareholders, who have recently been worried that the current economic situation may keep individuals from snatching up new 'Berrys at a breakneck pace. Now, if only RIM / AT&T would let the thing get through testing, we'd be all set to contribute to those margins here in the US. Ahem.
Samsung resumes chip production, minifies losses
Merely hours after Samsung was staring at "at least" $54 million in losses from an unexpected power outage at its Giheung complex, the firm is now reporting that the half dozen production lines are "fully operational." Moreover, the outfit is now projecting losses to peak at around $43 million, which actually doesn't sound too horrific compared to prior estimates. It was noted, however, that the disruption could extend a shortage of NAND flash memory through "at least the first half of August," and reports are already claiming that prices of select NAND chips have risen "6.3-percent to a record $19.02."
TI launches second-generation RFID silicon
With corporate giants like Wal-Mart embracing RFID in every potential nook and cranny of their supply chain, it's becoming quite the profitable little cottage industry, and Texas Instruments apparently wants a bigger piece of the pie. With the announcement of its EPC second-generation UHF-based RFID silicon, the company has blazed its own trail by insourcing the fabrication of its tags and marketing the new chips to retailers who rely on fast-paced data transmissions in their manufacturing and distribution channels. The new Gen 2 silicon obviously has complex underpinnings responsible for the changes; as TI states, it's developed "on the most advanced analog process node at 130 nanometer and with a built-in Schottky diode [saywha?] for more efficient conversion of RF signal energy." While that may not mean much to you, the skinny is that these new tags have increased chip-to-reader sensitivity, so more packages can be read at a faster pace from a greater distance than before. What this provides end-users with is greater flexibility, which has been a issue with passive RFID thus far -- new wafers and chips can be placed in more varied locations on pallets, boxes, and even flexible packaging such as bags, without fear of slipping under the radar (literally). And, as always, while retailers may dig the the increased read-range, we're sure it won't be long before the privacy advocates introduce a high-proximity RFID scrambler just in case these tags make the jump from packaging to people.
