Report: Apple to Absorb iPad Cost Increases in Japan

Apple is going to be absorbing increasing costs incurred by the company’s supply chain in the production and delivery of iPad 2 components, according to Taiwan-based tech newspaper, DigiTimes. Apple has agreed to do so in exchange for smooth delivery of those components.

The story comes amidst reports of mandated power brownouts in Japan in the wake of an earthquake/tsunamis disaster, as well as problems in one of the country’s nuclear power plants. Apple’s huge cash pile and enormous sales volume is effectively allowing the company to make sure that it gets the supply it needs while it expands availability of the device throughout the globe and deals with heavy demand in the U.S.

Apple’s ability to absorb increased costs also means that Apple’s competitors are going to face increasing difficulty in getting components for their tablets, and this is in addition to the fact that Apple already had as much as 60% of the supply of some critical components locked up in contract. What impact this has on an industry that has already had difficulty bringing competing devices to market remains to be seen.