Apple has a fierce reputation for driving a hard bargain with its component suppliers, using its size and status to demand ultra-competitive pricing. But according to Digitimes, suppliers in Taiwan are starting to resist demands for ever-greater discounts.
Apple is said to have asked downstream part and component suppliers […] to reduce their quotes for iPhone 7 devices by as much as 20% even though order volumes for new phones are reportedly 30% lower than those placed a year earlier. Major downstream suppliers, notably Advanced Semiconductor Engineering (ASE) and associated companies under the Foxconn Group, have replied Apple that they could not be able to accept orders without reasonable profits at this time.
The two sides each appear to be bringing persuasive arguments to the table …
Filed under: Apple
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