Apple iOS keeps Japanese heavy machining industry afloat, throttles touch screen market

According to recent reports, Apple's iPad and iPhone are keeping Japan's machining industry afloat — one of the leaders in its economy in the quarter — as well as dominating the touch screen market.

According to recent reports, Apple's iPad and iPhone are keeping Japan's machining industry afloat — one of the leaders in its economy in the quarter — as well as dominating the touch screen market.

At the Business Insider's Money Game, Joe Weisenthal said that the sales of high tech manufacturing equipment could lift Japan out its deflationary cycle. The one bright spot last month was the resurgent demand from Chinese manufacturers making Apple iOS devices.

At the risk of indulging in over-enthusiasm about globalization, the fact that an American company, which builds its products in China, is having a meaningful impact on the export fortunes of Japan is pretty remarkable.

Then DigiTimes on Thursday said that Apple has grabbed about 60 percent of the touch screen market, which will put a squeeze on the competition.

Sources from iPad distributors pointed out that in 2010, Apple's order forecasts to its OEM partners were all high and the biggest problem on the supply side was not capacity, but low yields of touch panels. In 2011, Apple's strategy of taking up most of the capacity should help the company quickly expand its sales, while reducing its competitors' shipment growth.

Part of the slow arrival of tablets from competing vendors may be OS releated. But perhaps another reason for the delays is the shortage of components. By the time the bottleneck clears, Apple will be ready to release a further generation or two.

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