One way to stop new entrants.

7th April 2011

I read an article the other day which highlighted the delays of other tablets due out this year because of supply chain constrains and in particular the lack of LCD screens available from the manufacturers.

Looking deeper into the Article it become clear that one of the main reasons for this constrain is that Apple has reportedly invested $3.9 Billion in order to guarantee as long term supply of LCD screens for it’s iPad and other products much like their same approach in 2005 whereby they spent several billion securing flash memory for their iPod products.

This strategy amazed me, it’s win, win for apple, such a clever way of slowing down competitors, and guaranteeing product continuity for your self if you have the cash :-)