Tablet component suppliers concerned over iPad's dominance
Tablet component suppliers in Asia are concerned about the lack of competition in the tablet market. The iPad is the dominant player and is driving the growth in the industry. This is great now that the iPad is growing 166% year over year, but it doesn't bode well for the future when iPad sales reach their saturation point.
Other tablet manufacturers are either dropping out of the race completely or proceeding cautiously. As a result, these companies are ordering small volume orders which won't help component suppliers when the demand for the iPad sales begin to level off.
To combat this possible slowdown, component suppliers are reportedly working hard to meet the demands of these trailing tablet makers. Second tier component suppliers, in particular, are more flexible and willing to accept these smaller orders. These suppliers are likely grabbing orders while they can and hope that one of these competing tablets will catch on before iPad demand begins to plateau.
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