Increased Demand From Apple Inc. (AAPL) Could Hurt Here

If you are not staying up to date on the latest from the Apple Inc. (NASDAQ:AAPL) supply chain you are missing out on a lot of good information. We have talked about this topic a lot over the past week or so, with this story being one of the most popular.

Apple is always looking for new and improved ways to improve its supply chain. Of course, this holds true with other tech companies as well.

Digitimes recently released an interesting reporting that may be traced back to Apple Inc. (NASDAQ:AAPL) as well as some of its primary competitors: Smartphone and tablet demand in 3Q13 expected to put strain on panel supply

On the surface, this shows that smartphone and tablet sales are going to increase during the third quarter of 2013. This alone is good news for the companies that dabble in these markets, one of which being Apple.

Even more important is the fact that this demand could put a lot of strain on panel suppliers. Does this mean there could be a slowdown? Only time will tell, but it is definitely a concern.

Here is more from the article:

“Smartphone and tablet demand is expected to increase drastically in August and September 2013, which is expected to put a crunch on panel supply throughout the third quarter of the year.

In 2013, smartphone shipments are expected to reach 400 million units, up 80% on year, with growth stemming largely from the China market.”

The China market is on the move, and this will likely continue for quite some time. In fact, the same article goes on to discuss how the “crunch” is expected to last well into the first half of 2014.

With entry level smartphones expected to be in high demand, it could be some time before things settle down for this arm of the supply chain.

As always, this is something Apple Inc. (NASDAQ:AAPL) will be keeping a close eye on. The company is well aware that any change to its supply chain, such as a slow down in production, could result in fewer smartphone shipments.

On the positive side of things, this report shows that smartphone and tablet sales are pushing forward and expected to reach new heights during the third quarter of 2013.

With demand on the rise and companies such as Apple Inc. (NASDAQ:AAPL) wanting to keep on track, panel suppliers will need to come through in the clutch.