More IPads Coming, Delays to Shorten

The Cupertino, Calif.-based company, which is scrambling to find resources in the wake of factory shutdowns in Japan, will pay more for a "sufficient supply" and "uninterrupted production," according to people familiar with the matter.

Apple, which is expected to sell 40 million devices in 2011, has been scrambling to find components for its products in the wake of the earthquake and tsunami that shut down factories in Japan. The company has been less vulnerable to price hikes than its competitors, due to long-term contracts with touch screen and flash memory makers, but shortages are forcing Apple to look elsewhere for premium-priced supplies.

Apple's bottom line will be hit, but consumers won't have to pay for the pricer parts. In fact, the move may benefit them by speeding up backorders.

Last week, customers ordering an iPad 2 reported average wait times of four and five weeks, doubling the delay a few days earlier. In addition, Apple is releasing the tablet in 25 more countries this Friday.

Apple's rivals, like Motorola and RIM, pushed up the launch date of their iPad challengers, hoping to capitalize on Apple's supply troubles. But, Apple is now putting increased pressure on them, as well as driving up prices for tablet and smartphone components.

Hon Hai, the Taiwan-based contract manufacturer for Apple, reportedly has a two to three weeks supply of components.