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Wednesday, October 06, 2010, 06:00 am PT (09:00 am ET)

iPad partners profit as Apple dominates touchscreen supplies

Companies who make touch panels for Apple's iPad are expected to see revenue growth in the fourth quarter of 2010 — a typically slow season that will be bolstered by red hot sales of the touchscreen tablet.

According to DigiTimes, companies like Wintek and TPK Touch Solutions are expected to experience continued revenue growth in the fourth quarter of calendar 2010, thanks to strong consumer demand for the iPad. However, other touch panel makers who concentrate on smartphones, like Young Fast Optoelectronics and J Touch, are anticipated to see the traditional end-of-year seasonal decline in business.

"With Apple currently dominating the touch screen tablet PC market, almost every touch panel maker with mass production ability has received orders from Apple," the Taiwanese industry publication wrote Wednesday.

iPad touch panel suppliers are expected to have increased capacity in the fourth quarter, which could lead to an even greater supply of devices for the holiday season. The increased supplies come as Apple has expanded the retail availability of the iPad to new outlets like Target, Amazon.com, and all Best Buy locations in the U.S.

The report also indicated that orders for touchscreen tablets other than the iPad are not expected to have a major impact for suppliers in the fourth quarter. Actual shipments for rival companies' iPad competitors are not expected to take place until 2011.

This week an analyst concluded that the iPad, introduced in April, has had the fastest adoption rate of any new electronics product ever. Apple announced in July that the iPad had sold 3.27 million units in its first three months of availability.