With the increasing demand in iPad 2, Apple is struggling along with its suppliers to stabilize the production of its new device. According to a report, Apple has agreed to sustain the cost of the additional parts caused due to the earthquake for smooth shipments of the needed components from the suppliers.
Although Japan’s power brownout policy is seriously affecting the operations of Japan-based upstream component makers, causing related upstream components to see price rises, since Apple has agreed to absorb all the additional costs in exchange for smooth shipments, Apple’s upstream component suppliers, which purchase components from Japan, are expected to see their profitability undamaged in the short term, according to sources from upstream component makers
According to Reuters, Taiwan’s Economic Daily News has reported that Apple has partnered with AU Optronics to provide displays for the iPad 2.
The Economic Daily News, citing no sources for its information, said the panels’ selling price will be three to four times more than regular panels of the same size, giving a big boost to AU’s profit.
AU could ship 30 million of the screens in a year, it said. The order will take up over half the capacity of its plant in Taichung, central Taiwan.
It is also said that Samsung is planning on a $3.6 billion expansion of its facilities in Austin, Texas and it is seeking to employ 300 new employees mainly to take care of Apple’s requirements. Samsung has also opened a R&D center in Austin, Texas. The Austin facility is expected to produce logic devices for Samsung’s System LSI business along with the production NAND chips which was already being manufactured by the same unit. Most of the production is going to accommodate one foundry customer’s requisite ,Apple Inc., The recruitment is said to occur during the first half of 2011.