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