Home
News
You are here

The X is a Frankenphone, see how Apple makes or breaks the fortunes of its suppliers

By Daniel Petrov

Published: Dec 20, 2017, 9:34 AM

19comments

Spanning from Saudi Arabia to Taiwan, Apple's suppliers have been riding on the iPhone success or going through hard times in the past decade, depending on whether they are anointed with the kiss on the forehead called an iPhone component order. Nikkei just came out with an analysis of what the iPhone's 10th anniversary means for the Asian technology companies, and has made several infographics that showcase what a Frankenstein monster the iPhone X is, for example, created by tens of different suppliers' parts.

Apple has drastically reshaped Asian technology companies with its handset orders, but, despite the assumption that they've been nickel-and-dimed all along, the infographics shows how the participants have turned into real juggernauts in their respective spheres of influence. On the other hand, we have former Asian heavyweights like Sony, Acer or Nintendo, which have struggled ever since the iPhone put an easy to use computer in our pockets. About 70% of Apple's component suppliers are Asian companies, but not all can be well in paradise going forward, the report concludes.

Supplying to Apple means you need to invest a lot in advance for new technologies and new equipment but you do not know whether you could find other customers to use that technology or production capacity once Apple ditches your technology or shifts orders to your rivals... We probably have reached an inflection point that Apple and its hardware suppliers are going on divergent growth paths.

source: Nikkei

View Full Bio

Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.