Apple iPad 2 Demand Constraining Amazon Tablet Production?

According to industry publication DigiTimes; Wintek, HannStar Display and J Touch may have to postpone orders from Amazon due to a constant increase in demand for the iPad 2.

Amazon is reportedly set to produce a batch of roughly 2 million tablets in its initial stage, with a sales target of 4 million for the entirety of 2011. However, analyst Gene Munster of Piper Jaffray predicts the company will reach sales of only 2.4 million for its Android tablets in 2012.

TPK, a major supplier of touch modules for the iPad is also said to be “reluctant to make a commitment to supplying touch panels to Amazon on concerns of capacity.”

Moreover, with Apple taking up to 60 per cent of the world’s touch panel production, Amazon will find it difficult to produce its devices within the desired timeframe. The California-based giant uses upfront cash payments to acquire production priority over competitors, thus causing other tablets to be severely delayed being simply outgunned by the lack of parts such as glass capacitive touch panels.

RIM’s PlayBook is just such an example, experiencing delays of up to a month due to the iPad 2’s resounding success. While Amazon’s tablets might be able to find a place in the market, with the ever-increasing demands for Apple’s range, not only will the Android tablets face an uphill struggle to secure consumer demand, but also face a challenge to muscle in on Apple and secure the necessary supply.