As iPhone sales drop, Apple reportedly asks suppliers to cut their component prices
by Daniel Petrov / Jan 14, 2019, 5:44 AM
The Taiwanese company Catcher that makes the metal frames for the iPhone X, had a disastrous 28% decrease in December revenue and the iPhone camera lens maker Largan Precision managed to beat it with 33.86% drop in sales then.
The revenue of Apple's chief assembler - Foxconn - fell 8.27% in December from the same period last year, too, which the company attributes to "the relatively large scale decline in the consumer electronics segment."
Apple attributes the slower-than-expected iPhone sales to the US trade war with China and other external factors and has reportedly asked suppliers to cut their prices 10% which would mean a pretty terrible quarter for them as the price drop would come on top of diminished sale projections.
Posts: 22; Member since: Jan 13, 2016
Apple always abusing its power over suppliers. No news here.
posted on Jan 14, 2019, 5:55 AM 21
Posts: 140; Member since: Sep 29, 2009
I was going to say. "Our bottom line first before yours".
posted on Jan 14, 2019, 7:02 AM 3
Posts: 4063; Member since: Jul 23, 2013
This might have a very disastrous effect. As Apple pushes for lower and even thinner margins for its suppliers, they'll start folding and end up being bought out by competitors, which will then proceed to charge Apple an arm and a leg for the same stuff. It is literally a straight up dumpster fire over at Cupertino apparently. A very rich dumpster fire, but a dumpster fire nonetheless.
posted on Jan 14, 2019, 5:56 PM 1
Posts: 771; Member since: Sep 26, 2017
Apple, do 10% off for your products my business had a bad month?
posted on Jan 14, 2019, 6:23 AM 3
You can always ask, just like Apple is asking. And suppliers can say no, with the risk Apple will go to the competition of course. And if Apple says no to you, you can go to the competition as well. Pretty basic supply and demand.
posted on Jan 14, 2019, 7:12 AM 5
Posts: 94; Member since: Jan 09, 2016
But if Apple is your largest client (sometimes the only one) then you cannot say No because you are in risk to lose the whole business. So it's better to say Yes but keep the business. Just my thoughts.
posted on Jan 14, 2019, 8:18 AM 1
Posts: 2815; Member since: Oct 03, 2012
Fruit company you a are truly a crappy company! Ask your suppliers to cut prices while a fruit phone cost around 200 euro's to make and you charge 1000 plus euro's? Where is the honesty in that? I hope the suppliers will say F you we will increase instead!
posted on Jan 14, 2019, 6:29 AM 10
Posts: 3127; Member since: Apr 15, 2016
Lol, they already bought those parts dirt cheap from chinese suppliers, and sell their phones with 200% mark-up, now they ask for 10% price cut from their supplier, that's pathetic.
posted on Jan 14, 2019, 8:05 AM 1
Posts: 1181; Member since: Mar 15, 2018
Where do you get your numbers? 200% markup?
posted on Jan 14, 2019, 11:26 AM 0
Posts: 430; Member since: May 16, 2017
The 200% markup is incorrect. It's more than that. According to ZDNet, 32GB iPhone 7 that retails for $649 costs Apple: $219.80 in component cost $5 for China sweatshop manufacturinghttps://www.zdnet.com/article/
According to Vox.com
For Iphone X that retails for $1,000
$370.25 in component cost
$8 for China sweatshop manufacturinghttps://www.vox.com/technology /2018/9/13/17851052/apple-iphone-price-china-trump-us-trade
posted on Jan 14, 2019, 12:13 PM 0
Posts: 1425; Member since: Mar 13, 2016
I have a feeling this years iPhones will be great. This is the wake-up call apple needed.
posted on Jan 14, 2019, 8:06 AM 2
Posts: 1181; Member since: Mar 15, 2018
i was waiting for this a long time, i can appreciate samsung, apple, and others for thier pro's... but i think apple can do much much better, unfortunatly they're stuck with that bean counting tim cook - and i hope finally he gets his head turned the right direction.
posted on Jan 15, 2019, 1:55 AM 0
Posts: 263; Member since: Mar 28, 2008
So basically Apple says "Drop your prices, so we won't have to" or i'm missing something
posted on Jan 14, 2019, 8:11 AM 2
Posts: 1549; Member since: Jul 12, 2016
When I buy less of something I usually don't expect a discount.
posted on Jan 14, 2019, 8:50 AM 2
Posts: 82; Member since: Sep 11, 2012
When everyone is buying less of something (i.e. iPhones), the laws of supply and demand say the price should be lower, not higher (i.e, iPhone X compared to iPhone 7). Less demand doesn't somehow make your product more valuable just because you are trying to maintain profits. Great if you can, but it doesn't seem to be working that way as they are reportedly starting to drop prices on the Xr.
posted on Jan 14, 2019, 11:41 AM 0
Posts: 326; Member since: Aug 01, 2012
emmm, no. quite the contrary. the more you buy, the cheaper it gets. the less you buy the more expensive. actually suppliers should increase their prices.
posted on Jan 14, 2019, 10:27 AM 2
Posts: 2026; Member since: May 26, 2011
That's why they get agreed pricing from their suppliers based on the assumption that they will be buying x amount but the actual amount of parts bought from supplier is significantly less than x. This has been an ongoing complaint from various suppliers over the years
posted on Jan 14, 2019, 10:46 AM 2
Send a warning to post author
Send a warning to Selected user.
The user has 0 warnings currently.
Next warning will result in ban!
Ban user and delete all posts
Message to PhoneArena moderator (optional):