Amazon tablet could face production constraints driven by Apple's iPad 2

Posted:
in iPad edited January 2014
Amazon could have a difficult time securing manufacturing commitments for its rumored LCD tablet, as Apple's iPad 2 is predicted to occupy most of the available tablet production capacity in the later half of the year, according to a new report.



Taiwan industry publication DigiTimes reported Thursday that touch panels Wintek, HannStar Display and J Touch may receive orders for a touchscreen tablet from Amazon for the second half of 2011. Sources said Amazon has reportedly held talks with the above manufacturers, as well as TPK Holdings.



However, Wintek also takes touch panel orders from Apple for the iPad and iPhone and recently revealed that its production schedule "will become tight in the second half of the year," possibly making it difficult for the manufacturer to accommodate orders from Amazon, the report noted.



Meanwhile, sources said TPK, a major supplier of touch modules for the iPad, "has been reluctant to make a commitment to suppling touch panels to Amazon on concerns of capacity."



According to the report, Amazon is looking to produce an initial batch of 1.5-2 million tablets. An earlier report from the publication claimed the online retailer will release the devices in September with a sales target of 4 million tablets in 2011. Meanwhile, Piper Jaffray analyst Gene Munster predicts sales of an Amazon Android tablet to reach 2.4 million in 2012.



An earlier report, also from DigiTimes said Amazon has placed orders with Quanta Computer to build an LCD tablet and plans to partner with E-Ink holdings on the device.



It has been suggested that Apple books as much as 60 percent of the world's touch panel capacity, outmaneuvering competitors by offering upfront cash payments. "Second tier players" have reportedly been pushed out of the market entirely due to a lack of glass capacitive touch panels.



With Apple taking up the lion's share of capacity, competitors have allegedly felt the squeeze. According to one report, Research in Motion's BlackBerry PlayBook was delayed for a month in part because of the iPad 2 success.



Staggering demand for the Apple's latest tablet caused tight supply last quarter. Even after selling every iPad 2 it would make, Apple faced "the mother of all backlogs" with the device.



However, recent checks by analysts point to significant improvement in Apple's iPad supply constraints.
«13

Comments

  • Reply 1 of 60
    dickprinterdickprinter Posts: 1,060member
    That's one way to stay a step ahead of your competitors, delay their product release by reserving an insane amount of the components they need. By the time they release their tablet, Apple already has the next generation designed.
  • Reply 2 of 60
    jacksonsjacksons Posts: 244member
    Quote:
    Originally Posted by Dickprinter View Post


    That's one way to stay a step ahead of your competitors, delay their product release by reserving an insane amount of the components they need. By the time they release their tablet, Apple already has the next generation designed.



    Well, maybe there will soon be plenty of supply from Samsung if we are to believe what we read in these pages.
  • Reply 3 of 60
    povilaspovilas Posts: 473member
    Quote:
    Originally Posted by Dickprinter View Post


    That's one way to stay a step ahead of your competitors, delay their product release by reserving an insane amount of the components they need. By the time they release their tablet, Apple already has the next generation designed.



    Apple actually needs insane amounts of that stuff. Two birds with one stone?
  • Reply 4 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Jacksons View Post


    Well, maybe there will soon be plenty of supply from Samsung if we are to believe what we read in these pages.



    Samsung don't actually make this component, they make LCD screens but not the touch sensitive panel.
  • Reply 5 of 60
    mac.worldmac.world Posts: 340member
    Quote:

    According to the report, Amazon is looking to produce an initial batch of 1.5-2 million tablets. An earlier report from the publication claimed the online retailer will release the devices in September with a sales target of 4 million tablets in 2011. Meanwhile, Piper Jaffray analyst Gene Munster predicts sales of an Amazon Android tablet to reach 2.4 million in 2012.



    By Q1 of 2011, Amazon will reduce production numbers by half.
  • Reply 6 of 60
    cloudgazercloudgazer Posts: 2,161member
    Amazon's biggest problem here may be their inability to publish 'shipped to channel' numbers that exaggerate their sales - they are the channel. Admittedly if they follow their practice with the kindle they won't announce numbers at all.
  • Reply 7 of 60
    stelligentstelligent Posts: 2,680member
    This report is erroneous. What is clogging up the manufacturing capacity around the world is not the iPad but rather the Playbook.
  • Reply 8 of 60
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by cloudgazer View Post


    Amazon's biggest problem here may be their inability to publish 'shipped to channel' numbers that exaggerate their sales - they are the channel. Admittedly if they follow their practice with the kindle they won't announce numbers at all.



    True - the Kindle has a certain mystique because you don't really know how many are sold. But if people (particularly here) seem to have faith in analysts' projections, why not trust their estimate of Kindle sales, which are rather impressive.



    I'd say this much - you see as many Kindles in the wild as iPads, possibly more.
  • Reply 9 of 60
    wizard69wizard69 Posts: 12,720member
    That is. I see Kindles all over the place. However currently Kindle is not a general purpose computing device, so I don't see it as direct competition with Apple. Amazons tablet would be depending upon it's exact configuration.

    Quote:
    Originally Posted by stelligent View Post


    True - the Kindle has a certain mystique because you don't really know how many are sold. But if people (particularly here) seem to have faith in analysts' projections, why not trust their estimate of Kindle sales, which are rather impressive.



    I'd say this much - you see as many Kindles in the wild as iPads, possibly more.



    More for sure. I've traveled a bit this winter and it is fair to say they are seen everywhere.



    But again it doesn't mean anything as they hardly compete with iPad. Frankly I'd like to see an iPad with a Kindle sized screen. Again not to compete directly but rather to fill a niche with a properly sized tablet. Kindle is a very handily sized device.
  • Reply 10 of 60
    solipsismsolipsism Posts: 25,726member
    I think Amazon with its media ecosystem and slew of CC holders on file could be Apple's biggest challenge to the tablet market if they can get the HW and SW right. If not, Apple may have another iPod-like dominance all over again. These next 12 months will be very telling.
  • Reply 11 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by robocop View Post


    Amazon would have not had this problem if we were manufacturing our own touch panels and electronic components. It is time to put a stop to this overseas manufacturing madness. Millions of American needs work and there won't be any American unemployed if we bring the manufacturing plants back home. The job outsourcing reports tell the story of many Americans who have lost their jobs. http://tiny.cc/73eml



    Also Amazon wouldn't have this problem if they set up a police state in the USA and compelled everybody to buy an amazon tablet, which would probably be cheaper.
  • Reply 12 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by stelligent View Post


    True - the Kindle has a certain mystique because you don't really know how many are sold. But if people (particularly here) seem to have faith in analysts' projections, why not trust their estimate of Kindle sales, which are rather impressive.



    I'd say this much - you see as many Kindles in the wild as iPads, possibly more.



    I don't dispute the fact that they're popular, and they're an obvious choice for a book reader that you carry around - I just wonder why Amazon haven't shouted the numbers from the rooftops. I do think that they're very georgraphically limited to the US, which is bizarre as there's no real reason that they should be. I've never seen a kindle in the wild in the UK, not once. The only person I know in the UK who owns a kindle admitted to me that after buying an iPad he no longer knows where his kindle is.
  • Reply 13 of 60
    anantksundaramanantksundaram Posts: 19,058member
    Quote:
    Originally Posted by solipsism View Post


    I think Amazon with its media ecosystem and slew of CC holders on file could be Apple's biggest challenge to the tablet market if they can get the HW and SW right. If not, Apple may have another iPod-like dominance all over again. These next 12 months will be very telling.



    I agree. But manufacturing, quality-testing, shipping, and servicing an iPad with its attendant ecosystem could be quite a task compared to a Kindle. Look at issues that even an HP is having.



    So I would bet against Amazon being able to pull this off.
  • Reply 14 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by wizard69 View Post


    But again it doesn't mean anything as they hardly compete with iPad. Frankly I'd like to see an iPad with a Kindle sized screen. Again not to compete directly but rather to fill a niche with a properly sized tablet. Kindle is a very handily sized device.



    I'd also love to see a kindle with an e-ink touch screen like the Nook - that little keyboard just seems totally dotty to me on a device designed for reading. I'd consider buying that if it was priced aggressively.



    I just don't think that what makes the kindle a useful object necessarily translates over to a more general tablet device.
  • Reply 15 of 60
    lkrupplkrupp Posts: 6,810member
    The government should step in and limit Apple to a production quota so other companies can compete on a level playing field. If you want an iPad, sorry, Apple sold its quota for this month, buy a Xoom or just wait till next month. It's the only way to be fair, which is what our culture is all about these days.
  • Reply 16 of 60
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by lkrupp View Post


    The government should step in and limit Apple to a production quota so other companies can compete on a level playing field. If you want an iPad, sorry, Apple sold its quota for this month, buy a Xoom or just wait till next month. It's the only way to be fair, which is what our culture is all about these days.



    If you you really call that fair then why not force Apple to make the power efficiency less efficient, add code that makes their UI jittery, and gradually slows down the entire device forcing a reboot once a day? It's only fair if you want a level playing field.
  • Reply 17 of 60
    tallest skiltallest skil Posts: 43,399member
    Quote:
    Originally Posted by lkrupp View Post


    The government should step in and limit Apple to a production quota so other companies can compete on a level playing field.



    There is something deeply wrong with you.



    Quote:

    If you want an iPad, sorry, Apple sold its quota for this month



    This isn't the 1920s and we're not talking about limiting the number of immigrants from certain countries here.



    Quote:

    It's the only way to be fair, which is what our culture is all about these days.



    SCREW. THAT.



    "No, you can't buy that food. You have to buy this food."



    "I don't want this food. I want that food."



    "Screw you, citizen. You have to buy this food."



    That's what you're proposing.
  • Reply 18 of 60
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Tallest Skil View Post


    There is something deeply wrong with you.



    I'm guessing he recently read Atlas Shrugged and is suggesting that we live in Rand's vision of socialist dystopia. He was aiming for a criticism of modern society but didn't get it across well.
  • Reply 19 of 60
    sipsip Posts: 210member
    Quote:
    Originally Posted by robocop View Post


    Amazon would have not had this problem if we were manufacturing our own touch panels and electronic components. It is time to put a stop to this overseas manufacturing madness. Millions of American needs work and there won't be any American unemployed if we bring the manufacturing plants back home. The job outsourcing reports tell the story of many Americans who have lost their jobs. http://tiny.cc/73eml



    The only way this may happen is if US workers were willing to accept $5 per day not $10 an hour. Can't see that happening, can you?



    As I was reading the article, I thought, some idiot is going to crawl out of the woodwork and suggest that the government impose limits on Apple, and sure enough, lkrupp gladly obliged! The only thing the US government could do is limit imports, not production, because factories in the Far East aren't yet in US territory.



    The other major issue is that China "owns" a lot of the US (the US is in deep hock to China), and is in no position to dictate Chinese economic policy.
  • Reply 20 of 60
    Quote:
    Originally Posted by cloudgazer View Post


    I'm guessing he recently read Atlas Shrugged and is suggesting that we live in Rand's vision of socialist dystopia. He was aiming for a criticism of modern society but didn't get it across well.



    That HAD to be sarcasm, otherwise it defies all reason. Or, maybe he's a kindergartner?
Sign In or Register to comment.