Kuo’s latest report reveals Apple changing suppliers for key products
As if we needed another proof that the holidays are over and we’re back to the daily grind, the first 2020 report from Ming-Chi Kuo is apparently out and MacRumors got a hold of it. As usual, the report contains insights about Apple’s activities that might be deemed interesting by investors. And while most of us don’t own Apple stocks, what the company is doing is still noteworthy.
First off, Apple is adding another manufacturer of AirPods Pro. Despite the hefty $250 price tag, the wireless earbuds are performing better than even Apple expected and now the Chinese company Goertek is joining in to help Apple keep up with demand.
Quanta is being pushed out from another supply chain, that of the iPod Touch. The iPod will be manufactured by BYD Electronic instead. BYD is also set to take care of around 20% of non-cellular iPad orders.
So, Quanta Computer drew the short stick this time around but the report gives no explanation about why that is. Currently, the news doesn’t seem to have affected Quanta’s share price but the situation might be different once the lost orders manifest as lower quarterly profits.
Should we expect a noticeable change in the quality of the aforementioned Apple products? Not really. Apple’s strict QC will likely make sure products from different plants are identical as far as users are concerned. Still, the moves send a message that Apple won't hesitate to drop a supplier if it's not happy with it.
Granted, this time the essence of the report is less exciting as there are no upcoming products revealed, but hey, you can’t have new iPhones popping up every month. Instead, Kuo says that Apple is making some significant changes in its supply chain.
First off, Apple is adding another manufacturer of AirPods Pro. Despite the hefty $250 price tag, the wireless earbuds are performing better than even Apple expected and now the Chinese company Goertek is joining in to help Apple keep up with demand.
The other AirPods Pro supplier, Luxshare Precision, will be tasked with making the chips for the upcoming Apple Watch Series 6. Luxshare will be the exclusive provider of these chips, replacing Quanta Computer, which took care of the Series 5 supply.
Quanta is being pushed out from another supply chain, that of the iPod Touch. The iPod will be manufactured by BYD Electronic instead. BYD is also set to take care of around 20% of non-cellular iPad orders.
So, Quanta Computer drew the short stick this time around but the report gives no explanation about why that is. Currently, the news doesn’t seem to have affected Quanta’s share price but the situation might be different once the lost orders manifest as lower quarterly profits.
Should we expect a noticeable change in the quality of the aforementioned Apple products? Not really. Apple’s strict QC will likely make sure products from different plants are identical as far as users are concerned. Still, the moves send a message that Apple won't hesitate to drop a supplier if it's not happy with it.
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