Apple (AAPL) May Find Itself in Another Supply Chain Struggle

March 7, 2013 7:48 AM EST
Apple, Inc. (Nasdaq: AAPL) fell from all-time highs last September as it worked to get enough supplies for its iPhone 5 to meet demand. But, could the same thing be happening all over again?

According to Digitimes, Apple might struggle again as the supplier of thin-film touch sensors for its iPad and iPad mini tablets, Nissha Printing, is struggling to meet demand. Digitimes cites industry sources on the information.

Apple's next-generation iPad is expected to use the same thin-film DITO (G/F2) touch panel structure as the iPad mini, sources said. Nissha currently has production capacity of 60 million 9.7-inch-equivalent touch sensors. Apple is expected to ship 33 million iPads and 55 million iPad mini units in 2013.

Production capacity at Nissha is expected to grow by 30 percent before the end of the first-quarter, sources stated.

Despite the increased production, Digitimes noted that two of Apple's supply chains may be in conflict. The two suppliers may be vying to nab more of the touch-sensor film in the second quarter in order to meet demand for the following quarter.

Shares of Apple are down about 0.3 percent early.

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Cash hoard = strategic advantage
mika on 2013-03-07 12:31:21
Mark as Spam | Reply to this comment

Sounds like a good place to invest part of that $90B that is overseas...

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