Tuesday, April 20, 2010

Recent Trouble for Apple Inc. - - Apple iPad's International Demand Surpasses Company's Supply Capabilities


Lately, the Apple iPad fanfare bubble seems to be leaking from the edges as more and more troubles for Apple Inc. in regards to the device keep cropping up. The saga started with the numerous complaints and grievances from iPad users, stating that, the device’s WiFi is faulty. Next came Apple’s big decision to postpone the international launch of the iPad as the demand of the device was far surpassing the company’s supply capabilities.

Now as per analysts, the companies that are in production line of the display for the iPad, such as LG Display Co. and Samsung Electronics Co along with Seiko Epson Corp could be facing a very hard time in manufacturing of the 9.7 inch display screen in the numbers required by Apple Inc. The launch of the iPad was being viewed by Apple Inc. CEO, Steve Jobs as a new business vertical that bridged the gap between the iPhone and Mac computers. However, with such delays and the production troubles, Apple could run into some big hitters like Hewlett Packard and Dell Inc. before Mr. Jobs is able to realize his dream of domination of the tablet environment.

In the very first week of the launch of the iPad, Apple had sold more than 500,000 iPad units and then broke the news of the delay in the international launch. Such a delay means that, some of the most prominent Apple markets such as U.K., Canada, Australia, France, Germany, Italy, Japan, Spain and Switzerland will have to wait till the end of the month of May to see the iPad arrive in their markets.

According to Andrew Rassweiler (Analyst, iSuppli Corp),

“We understand that the yields on the display have been low and that they’re creating a production bottleneck. That they have been doing it for the iPhone for some time is great, but once you go to 9.7 inches, it is a much more complicated process.”

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