War is declared and the shelves will soon rage. Or maybe not. The fight may not occur for lack of combatants: Apple would use its huge cash to prevent competitors from obtaining supplies touch screens. The information has been reported by DigiTimes. According to our colleagues have suggested Apple to Taiwanese manufacturers of touch screens that they could raise their prices.
Apple would have chosen to increase the manufacturing costs of tablets and smartphones of its competitors in order to slow their market penetration. Apple could easily collect this general increase in costs due to its comfortable cash reserves (40 billion dollars according to the latest published results).
Its competitors are generally worse off. In addition Apple has placed orders for touch screens up to 60% of world production. Such a volume that will be able to manufacture 40 million iPad and even iPhone. This strategy of suffocation will probably not appeal to consumers (except those planning to buy an Apple product) but it seems a cold efficiency.
Apple would have chosen to increase the manufacturing costs of tablets and smartphones of its competitors in order to slow their market penetration. Apple could easily collect this general increase in costs due to its comfortable cash reserves (40 billion dollars according to the latest published results).
Its competitors are generally worse off. In addition Apple has placed orders for touch screens up to 60% of world production. Such a volume that will be able to manufacture 40 million iPad and even iPhone. This strategy of suffocation will probably not appeal to consumers (except those planning to buy an Apple product) but it seems a cold efficiency.
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