According to reports in today’s Economic Daily News, Apple has demanded cuts in supplier’s quotes for various components that are vital to the production of the iPhone and iPad. The paper has reported that Apple is putting significant pressure on the suppliers of PCBs, optical components, battery modules and touch panels to cut costs by 10% in the second quarter of 2011.
Apple is using the increased business it brings to the suppliers as a bargaining chip to get a 10% cut in costs. In particular the growing popularity of the iPad has meant that analysts are expecting a 70% growth in the second quarter, a significant windfall for Apple’s suppliers.
With a new iPhone expected sometime later this year and continued growth because of the iPad, Apple is expected to continue to demand cuts both in this quarter and on an ongoing basis.
Unlock MacStories Extras
Club MacStories offers exclusive access to extra MacStories content, delivered every week; it’s also a way to support us directly.
Club MacStories will help you discover the best apps for your devices and get the most out of your iPhone, iPad, and Mac. It’ll also give you access to advanced iOS shortcuts, tips and tricks, and lots more.
Starting at $5/month, with an annual option available.
Join the Club.
A Club MacStories membership includes:
- MacStories Weekly newsletter, delivered every week on Friday with app collections, tips, iOS workflows, and more;
- MacStories Unplugged podcast, published monthly with discussions on what we’re working on and more;
- Monthly Log newsletter, delivered once every month with behind-the-scenes stories, app notes, personal journals, and more;
- Access to occasional giveaways, discounts, and free downloads.