Apple (AAPL) Agrees to Higher Costs to iPad 2 Components Flowing

Reports of out Asia on Thursday suggest that Apple Inc. (NASDAQ: AAPL) has agreed to absorb the increased costs of upstream components to prevent shipping delays of the popular iPad 2 tablet computer.

The report from DigiTimes out of Taiwan citing industry sources said Apple has agreed to the arrangement.

"However, for other tablet PC vendors, purchasing pressure will increase and if they are unable to absorb the extra costs, which will only give Apple more advantages in the market," the report stated.

The sources added that shipments of the iPad 2 will hit four million units in the second quarter.

Piper Jaffray analyst Gene Munster commented that any impact to supply for the iPad 2 would be "modest."

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