According to DisplaySearch, LG Display Co. Ltd. (NYSE: LPL) provided more than one-third of Apple Inc.’s (NASDAQ: AAPL) iPad screens. Apple tablet shipments accounted for 84% of all tablets shipped in the second quarter of 2012. Hon Hai Precision Technology Ltd. (aka, Foxconn) manufactured 84% of Apple’s iPads, and Quanta Computer Inc. manufactured the rest.
Quanta also manufactured the largest portion of mobile PCs for Hewlett-Packard Co. (NYSE: HPQ), the firm that shipped the second largest number of mobile computers in the second quarter, and began manufacturing the 7-inch Nexus 7 tablet for Google Inc. (NASDAQ: GOOG).
DisplaySearch anticipates that “competitive conflicts” could disrupt the mobile PC supply chain that currently exists. An analyst gives Samsung as an example:
Samsung Display plans to improve its mobile PC customer portfolio by reducing its share in Apple and increasing support to captive brands and other external customers, like Amazon and Barnes & Noble.
Another shift will be the move to touch-screen notebooks and ultra-slim devices, where Apple’s competitors have a better chance at capturing market share and will be placing larger orders on suppliers for the components they need at the lowest possible cost. DisplaySearch’s analyst again:
With 2013 business planning well underway, product portfolios, sales strategies, and sourcing plans for mobile PC brands will certainly impact the supply chain. … Looking ahead to 2013, business plans for the top 10 PC brands are set higher, with a 16% Y/Y shipment increase on average for notebook PCs. Tablet PC growth will remain strong, but may be less impressive than in 2012.
Paul Ausick