Summary
What would be Apple's strategy for a sustained position in the laptop market? What has hindered Apple to do more for a profit when cost reduction is a critical issue? How could the new lines appeal to catch more buys?
Analysis
Not surprisingly, Apple's new laptop lines demonstrate a combination of
glassy touch, aluminum alloy casing in thin profile without DVD media
player. In techie's eyes, Apple's new laptops are something yet losing
attraction; the exterior design could be more than the
merits it should have.
Two leading suppliers for metal casing, Catcher and Foxconn
headquartered in Taiwan, may contribute more for the
new laptop in terms of cost, yield, and tooling design. Synaptics
(Nasdaq: SYNA) may have sustained to update its touch pad technology
while facing competition and cost issues. The financial crisis has
impacted all the supply chains in Asia, particularly those who have
already expanded capacity in China where labor cost is getting higher; Shanghai area is a typical example. The manufacturing sites for
most of casings and laptop assemblies are in Great Shanghai area. In fact, Apple is losing its power in further cost reduction when the global consumer buying power gets weaker and other brands such as Acer, ASUS, and HP move quickly in economic laptop lines that should seize the major part of the market growth reportedly at 18% of annual rate through 2009.
One should not be surprised why Apple holds price high on the new lines.
