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Apple Gets Serious, Demands Suppliers To Reduce iPhone, iPad Component Costs

Apple Gets Serious, Demands Suppliers To Reduce iPhone, iPad Component Costs

Apple has reportedly demanded price cuts in quotes provided by suppliers for various iPhone and iPad components, including touch panels, batteries, optical components, and PCBs in order to cut costs by 10% in Q2.

The report, from Economic Daily News, suggests that Apple is using the additional business that it brings to those suppliers as a bargaining chip, using the growing popularity of the iPad as its trump card – after all, a supplier wouldn’t want to lose Apple’s business, right?

With a new iPhone expected later this year, and continued demands on the production of the iPad 2, it’s unsurprising that Apple is trying to maximize their profits as much as possible, although I’m not sure it’s terrible “right” for them to be screwing component suppliers just to raise their reserve cash leves to even more obscene levels…

Your thoughts? Sound off in the comments!

  1. Mac says:

    I think this is what the market need to reduce the price of all tablets. Pushing the suppliers, all the chain will reorganize themselves to produce more with more atractive cost. But, it will take some time yet.

  2. Tomasux says:

    If you can’t beat um, slow em down by increasing parts! GG

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