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The Apple iPad is currently dominating the tablet market. While Apple initially had a head start on the competition by releasing first, that advantage is set to continue because of clever deals Apple has made to ensure component supply.
The biggest problem for competitors isn’t competing with iPad on the open market, it’s getting the touch panels to make a tablet in the first place.
Apple has apparently secured itself 60% of global touch panel output for 2011. That means every other manufacturer out there is scrambling to secure part of the other 40% of supply. In other words: no one company can produce as many tablets as Apple this year.
The main supply problem is with glass capacitive touch panels which are the preferred choice for tablets. If you don’t have them in your tablet then an inferior alternative needs to be used. So at the first hurdle your tablet has a disadvantage compared to the competition, and in particular iPad.
The only good news comes for the smaller touch panel manufacturers out there. With supplies limited they are getting more business which could allow them to grow over the coming months and years.
