Apple iPhone could be a challenge for Asian hardware manufacturers

Apple has just launched their iPhone mobile product and they would start selling it in the market by June this year. There is a lot of craze over this phone in the market and the initial demand is likely to be very high.

Now, this is essentially good news for Apple suppliers based in the Asian countries. However, a huge initial demand for this phone could create huge challenges for some of those parts suppliers.

The company is targeting sales of 10 million units of the iPhone in 2008. However, the holiday season at the end of the current year would be the time when Apple would really be selling the device in large numbers.

Analysts believe that the hardware suppliers for this phone should be ready to handle this excess load capacity now or they could lose business if they end up disappointing Apple.

Merrill Lynch analyst Tony Tseng spoke about this problem: “Flash is the most possible sector that may face the (shortage) problem, and touch screens are also a niche product, so it might be another concern too.”

James Kim, an analyst at Lehman Brothers spoke about the effect of the Apple iPhone product on the other companies in the mobile industry: “In order to catch up, Samsung and LG need to change their whole R&D division’s focus. That would take at least a year. They need to find new ways to compete against the new iPhone. It won’t be easy.”