Apple Dominates Touchscreen Market, Others' Prices May Rise

17.02.2011
Apple has dominated close to 60 percent of the global touch panel capacity, causing its competitors -- including RIM, HP, and Motorola -- to fight for the remaining scraps to build touch screen smartphones and tablets, according to . Meanwhile, "second-tier" manufacturers (read: the creative minds behind ) are being pushed out of the tablet market altogether.

Digitimes' report noted that several notebook brands such as Samsung, Acer, and HP have all turned away from the major touch panel makers such as Wintek and TPK (where Apple holds control) to smaller suppliers: Sintek Photronic, Egalax-empia Technology (EETI), AimCore Technology, and J Touch.

While Apple's 60 percent may be good news for consumers overwhelmed by too many tablet choices on the market, and for small-name touch screen panel manufacturers, it may also result in higher-than-usual prices for Apple's competitors. It is basic supply and demand: panel prices will rise; Apple's competitors will be forced to spend more and then even out their losses by raising product prices.

Meanwhile, Apple can begin lowering its prices, like it has with and the (rumored) . Just think: Apple, always known for high quality -- and prices to match -- could become the bargain-bin company!

pointed out that on the company's last conference call, "Apple disclosed that it has signed long-term agreements with three vendors on unspecified components under which it expects to spend $3.9 billion in 'prepayments and capital expenditures' over a two-year period. Speculation on the Street has been that the arrangement specifically involved display screens."

is to sell over 100 million iPhones and 40 million iPads in 2011, which would result in a "$24 billion business as measured by revenue," calculated .