Apple boosts key component orders for iPhone

iPhone maker Apple has significantly increased its orders for the touch screen component used in the highly-anticipated smartphone, which goes on sale in the US this Friday.

A report by German daily Handelsblatt has revealed that Apple has increased its screen order from German supplier Balda, due to intense demand coupled with delivery problems at Japan's Sharp, tipped to be one of Apple's suppliers. Handelsblatt's report did not cite its sources.

A Balda spokesman declined to comment on the report but did say that Balda was expanding its production site for touch screens in China.

He said the touch-screen business in general was very interesting for the company.

Apple has ambitious plans to grab a share of the mobile phone market with the iPhone, planning to move 10 million units in 2008. The launch of the iPhone comes less than two years after the launch of Motorola's ROKR phone, which included an official iTunes player on the phone. The device was poorly received, being slow, buggy and too big.

Analysts have said a runaway success for the feature-jammed phone could create huge challenges for some of its parts suppliers, which may struggle to keep up with demand and Apple's notoriously extensive outsourced volume manufacturing requirements.

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