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This article was published on August 18, 2011


    Apple’s buying power halves touch panel prices, hits supplier revenues

    Apple’s buying power halves touch panel prices, hits supplier revenues
    Matt Brian
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    Matt Brian

    Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him on Google+.

    Apple’s sales momentum throughout the year is having a significant impact on revenues of its touch panel suppliers, with the Cupertino-based company submitting orders for sensors at nearly half the price in the past, Digitimes reports, citing industry sources.

    With Apple lowering its smartphone prices ahead of the launch of its next-generation iPhone, referred to by many as the ‘iPhone 5’, touch panel shipments have boosted orders but Apple’s low quotes have begun to affect the profitability of Taiwan’s component manufacturers.

    Wintek, the company that saw orders priced at 50% less than previously offered by Apple, actually rejected low-margin orders from the company, but saw significant decreases in revenues in its second quarter, almost forcing the company to accept Apple’s business to maintain revenues.

    Apple, with its enormous cash pile, is well known for its ability to negotiate exclusive deals with suppliers, investing early in component technologies to ensure it can reduce future order costs and tie up production output to further impact its rivals.