Upstream suppliers for iPhone 5 and iPad 3 begin preparations for materials

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It has been reported that the Taiwan based companies which are a part of the supply chain for the upcoming iPhone 5 and iPad 3 have started collecting raw material which will be used in the production of these Apple devices. Industry sources have suggested that these gadgets are expected to be unveiled by the technology giant in September and that they will be available in the market from October.

Component makers which include Foxconn Electronics, in charge of the assembly of the devices; TPK Holding and Wintek, in charge of creation of touch panel modules; Simpio Technologies and Dynapack International Technology, in charge for the manufacturing of batteries; Largan Precision, in charge of webcams; and Catcher, in charge of chassis production, will all be expected to make profits from the orders.

Simpio currently supplies 65% of Apple’s total demand for batteries, and Dynapack completes the remaining 35%. According to the sources, just one model of the new iPhone is planned to be launched by Apple, whereas iPad 3 has only been added to the production schedule recently. Both the devices are set up for production in small volumes in August; the volume of production will start to increase in September and October.

It was also revealed that the expected supply volume for the iPhone 5 is expected to be around 6 to 7 million units in the third quarter of this fiscal year. Along with the additional shipments of iPhone 4 the total number of iPhone units shipped will be around 24-25 million and these volumes will be maintained at the same level in the fourth quarter. It has been forecasted that Apple will ship more than 85 million units of the iPhone.

As Apple will also start supplying iPad 3 in August, the shipments of the series of iPad products, which include the iPad 2, are expected to go over 15 million units. Along with this, the supply volume of the iPad is expected to surpass 40 million units for 2011. Even as most analysts in the market expected that the supply volume for Apple’s iPhone in the third quarter will only reach around 20 million units and iPad’s supply volume will only reach 11-12 million units because of below par progress in the Chengdu assembly line of Foxconn, the members of Apple’s supply chain have increased their estimated supply volumes for the second half.

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