In the past, we have touched on stories regarding how some companies rely heavily on Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) to keep their business running. In other words, these tech giants can make or break many companies spanning a variety of industries.
This time around, we are going to take a closer look at touch panel makers and the fact that these companies faced a decline during the month of June.
While this is natural and does happen throughout the year, there is more to this story than meets the eye. Both Apple and Google are involved.
Here is what a recent report by Digitimes had to say:
“Touch panel makers saw decreased performance in June but are expected to recover in the third quarter, according to market observers.
Shipments for touch panels used in the iPad mini were down due to Apple preparing to launch a new version of the device, while shipments for iPad devices were down as well. Touch panel makers also did not see orders for the next generation Google Nexus as the device is not expected to be launched until third-quarter 2013, the observers said.”
As you can see, Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are both responsible for this slowdown. While these companies are not doing anything to intentionally harm touch panel makers, their current moves are doing just that.
Fortunately, things can and will likely turn around in the future as Apple and Google get back on track in the months to come.
If you don’t fully understand how Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) can impact touch pane makers as well as others on the supply chain, here is some more data from the article:
“The moves by Apple and Google led to a decline in TPK’s performance during June, and the company also expects a 15-20% decline in revenues during the second quarter of the year at NT$41 billion (US$1.36 billion).”
As you can see, this is no small number. Any change from giants like Apple and Google can do big time damage to smaller companies, such as TPK. This decline alone is going to cost the touch panel maker more than $1.3 billion, which is no drop in the bucket regardless of the company we are talking about.
This goes a long way in showing the power of both Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG).