Katie MarsalJapan's supply of components for the iPad 2 remains greatly affected by the disaster, DigiTimes reported Wednesday. Apple has reportedly shifted orders for iPad 2 connectors to Taiwan's Cvilux.
Previously, Apple depended on Japan's Hirose Electric for most of its iPad 2 connectors. But since the tsunami and earthquake, Japan has had a power brownout policy that left the company unable to meet demand for Apple.
As a result, Apple has instead turned to Cvilux for iPad 2 connectors, industry insiders reportedly said. The major order from Apple is expected to boost Cvilux to greater profitability.
In March, a report from Wall Street analyst Gene Munster of Piper Jaffray said that the disaster in Japan had not "meaningfully impacted" Apple's iPad 2 supply. Wednesday's latest report of connectors being secured from Taiwan could suggest that Apple has sidestepped potential issues from the disaster, turning elsewhere for components to keep building more iPad 2 units.
Other key iPad 2 components said to come from Japan include NAND flash from Toshiba Corp, DRAM from Elpida Memory Inc., an electronic compass from AKM Semiconductor, touchscreen overlay glass believed to be from Ashai Glass Co., and system batteries from Apple Japan Inc.
Apple has also reportedly become more aggressive in securing components since the disaster in Japan. One report earlier this month claimed that Apple was offering upfront cash payments to suppliers in order to secure components. It was also said that Apple was willing to agree to price hikes for components to ensure supply.
Demand for the new iPad 2 continues to outweigh supply, though Apple continues to expand retail availability of its second-generation touchscreen tablet. Just this last week, the device went on sale at some locations of U.S. retailer Toys R Us, and the iPad 2 is also expected to go on sale in Hong Kong, Korea and Singapore this month.
Amber Neely
Malcolm Owen
William Gallagher
Andrew O'Hara
William Gallagher and Mike Wuerthele
Mike Wuerthele
28 Comments
And this is the moment where Tim Cook shows his value. Managing a chaotic supply chain is precisely where his genius matches Jobs'.
I think some of the analysts expecting good margins this quarter are going to be in for a surprise. Apple appears willing to reduce margins to keep the volume up.
When they change multiple suppliers for various parts at will, how does this affect the overall quality of those iPads?
Wow. This is exactly what I said the other day when the forum was attacking Best Buy as bait and switch swindlers and I got not one response from anyone. Guess no one wanted to slow down the Best-Buy-Bash fest.
And this is the moment where Tim Cook shows his value. Managing a chaotic supply chain is precisely where his genius matches Jobs'.
Even better. Now lets take the tragedy in Japan and turn it into a praise fest for Apple. Yes, Tim Cook will work his magic and persuade devastated quake victims to "get back to work" on the iPad.
Even better. Now lets take the tragedy in Japan and turn it into a praise fest for Apple. Yes, Tim Cook will work his magic and persuade devastated quake victims to "get back to work" on the iPad.
Praise is a strong term. And it's less about Apple goading japan companies to meet their expectations than it is all those 'back benchers' who couldn't meet Apple's cost/delivery expectations are going to be pressed on to shine. The question will be, how much hit on component cost will Apple hit to meet demand AND/OR the expectations of the investors. That's an interesting balancing act.
The assumption is that Cook has a BCP plan that is approved by the board and is running with it. Apple is not about innovation (and yes, that may be too strong a word for it), as much as it is, _EXECUTION_. This isn't about steve boarding a plane and flying into Tokyo and kicking butts, as it is Tim picking up the phone and issuing the command 'Plan B.' at least that's how (us) investors are hoping.