Monday, January 24, 2011

Apple quietly cutting competition

This week Apple has highlighted the importance of supply chain for the success of a product. While every other company is busy in figuring out how to compete with iPad with their own tablet offerings Apple is quietly cutting its competition by entering into a deal of display components with LG, Samsung and Chimei Innolux for 65 million units.

The display manufacturers are already under pressure of meeting the demand with limited manufacturing capabilities. Apple securing 65 million units will not leave much left for its competitors. So now, its competitors may have high specs processors, latest version of operating systems, very good UI and millions of applications and heavy duty batteries but they may not have display for their mini computing devices.

For Apple the role of supply chain is not just to bring raw material to the factories or manufacturing units and ship finished products to the market. It is also ensuring that iPad will be the only device that will not have the shortage of supplies. 

No comments: