Passing Apple to Request Taiwanese Supplier to Reduce Price

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It is reported that Apple hopes to cut the purchase price of parts up to 20%. And, compared to last year, Apple's orders to Taiwan suppliers will be reduced by 30%. The report said that TSMC and Largan Precision were not included. The reason why Apple did not make this request to its two important customers is that TSMC will become the exclusive A10 supplier for Apple iPhone, and D&R has always been the supplier of Apple iPhone camera templates.

The report said that Apple will exert pressure on Taiwanese suppliers by strengthening its partnership with suppliers to parts of mainland China, forcing the latter to provide more competitive prices. However, the “Electronic Times” stated that Apple’s “squeezing” of Taiwanese suppliers’ profitability was unreasonable because the supply of spare parts from Apple’s suppliers to Apple was not comparable to that of mainland suppliers.

According to the report, Taiwan's ASE and Foxconn, both in the middle and lower reaches of Apple's supply chain, have told Apple that if they can't guarantee a reasonable profit, they will not accept orders. At the same time, the company's business has grown steadily in recent years, and the company has expanded its customer base and optimized its advanced assembly technology through its merger with SPIL. After Foxconn acquired Sharp, it means that the world’s largest commercial representative may not “please” Apple at the expense of its own profits.

According to data provided by Canaccord Genuity, in terms of equipment shipments, in 2015, Apple had occupied 17.2% of the global smartphone market share, but it had won 91% of the industrial profits.

Apple is expected to launch the new smart phone iPhone 7 in early September of this year. According to media reports, this phone will abandon the traditional headphone jack and upgrade the camera, processor and other components. It will also provide faster charging speed. , increase the entry-level version of storage to 32GB.

Source: appleinsider macrumors

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