Apple's Taiwan suppliers reluctant to lower prices of components in light of declining iPhone sales

According to a report by Taiwanese publication DigiTimes, Apple has been trying to persuade Taiwan-based companies up its supply chain to lower their quotes for components for the upcoming iPhone 7 and iPhone 7 Plus, in a bid to accomplish its goals of what the report refers to as “constantly squeezing profits from Taiwan suppliers.”

Reportedly, Apple has been trying to persuade some of its suppliers, excluding TSMC – the world's largest independent semiconductor foundry – and major camera modules supplier Largan Precision – to cut their prices for components for the iPhone 7 by as much as 20%, despite a reported 30% decline in order volumes for new phones this year and lower-than-expected iPhone sales in Q3 2016 (compared to Q3 2015).

According to the report, Apple is trying to leverage its demands by finding alternatives to current Taiwan-based suppliers in the face of Chinese component makers with lower quotes for parts, which “makes no sense […], since the quality of products rolled out by Taiwan- and China-based suppliers is standing at different levels.”

Reportedly, Apple is sticking with juggernauts TSMC and Largan Precision, only because the company is unable to find appropriate China-based alternatives.

Read more about the iPhone 7 and other upcoming Apple devices



source: DigiTimes

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39 Comments

2. Obádárà

Posts: 218; Member since: Nov 02, 2015

... THERE WE GO, ALWAYS LOOKING FOR PROFIT AT THE EXPENSE OF OTHERS...

3. TheOracle1

Posts: 2340; Member since: May 04, 2015

I wonder if they would be kind enough to pass those savings on to their loyal customers? NOT!

5. Iodine

Posts: 1501; Member since: Jun 19, 2014

Why not ? New features don't have a price you think ?

11. marorun

Posts: 5029; Member since: Mar 30, 2015

They already make enuf profit (90% of the industry) so no excuse apple apologist.

26. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What new features. What new features have you heard? 3GB of ram is only new to Apple. Dual camera is only new to Apple. 1080/1440p is only new to Apple. All those things well with the exception of the dual cameras have dropped in price do to so many OEM's using such.

32. lyndon420

Posts: 6875; Member since: Jul 11, 2012

Their loyal customers actually don't want cheaper priced products...it's something they're actually proud of, strange as it sounds.

4. Kumar123 unregistered

Bad Apple.

7. ibend

Posts: 6747; Member since: Sep 30, 2014

I like that one... best Touhou song...https://youtu.be/G3C-VevI36s

8. torr310

Posts: 1694; Member since: Oct 27, 2011

That's why Apple is one of the most profitable company and has the most cash in the world! This is an example of how riches get richer.

12. marorun

Posts: 5029; Member since: Mar 30, 2015

Question is should we support thats as customer?

14. kiko007

Posts: 7520; Member since: Feb 17, 2016

Why wouldn't we?

15. senseiJ

Posts: 172; Member since: May 02, 2015

Apple asking for discount then selling their product for 600-1000. What pot are they smoking?

21. kiko007

Posts: 7520; Member since: Feb 17, 2016

*Looks at Apple's sale figures *Looks at everyone else's *Genuinely wonder what world the individual above me has been living in this entire time. They're smoking Cali Kush.......and everybody else happens to be smoking Reggie. Some people/companies have privileges others don't...... deal with it.

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

The smoking "happy sticks" if you know what those are and if not. Its Kush that's been dip! Don't worry, Apple will pass those cost to there consumers and still make the same profit margin!

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Looks lik Apple is going to increase the iPhone cost by $100 each, just to give you 1080p and 1440p and they will use this as an excuse. Because apple has got to keep the bottom line as high as possible even with declining sales. So lets see, the component makes wont drop he cost 20%, which means Apple will raise the price 40% to compensate. The iPhone 7 will now be $699/799/899 and the Plus will be 799/899/999 or 1099 for a dual camera option. Should have stuck with Samsung!

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