Apple Demanding Price Cuts From Suppliers Ahead of iPhone 7

by

iPhone-trioApple is demanding price cuts on components for the new iPhone from its overseas suppliers to maintain its high profit margins, despite a global slowdown in smartphone sales, according to Taiwanese website DigiTimes.

The report claims several large Taiwan-based component suppliers such as Foxconn, Largan Precision, and Pegatron have already been affected, while strong competition in Greater China forcing the companies to "compete aggressively" over Apple's orders by cutting prices.

Currently, Largan is facing strong competition from Japan-based Kantatsu over camera module orders, while Foxconn and Pegatron are seeing Apple adding new ODM partners such as Wistron for the production of its new iPhone.

Apple is expected to announce the iPhone 7 series in September. The smartphones are expected to retain iPhone 6s-like designs with faster Apple A10 processors, dustproofing and waterproofing, repositioned antenna bands, and faster LTE and Wi-Fi. A dual-lens camera and 3GB of RAM may be exclusive to the 5.5-inch model.

Other rumored features include a Smart Connector, stereo speakers, and a flush, touch-sensitive home button, but it is not entirely clear if each of those features are destined for the iPhone 7 or iPhone 7 Plus/Pro, no longer planned, or reserved for the alleged OLED-based iPhone with glass casing expected in 2017.

Top Rated Comments

(View all)
Avatar
56 months ago

hopefully this means the price will drop for customers.

I like your sense of humor.
Score: 47 Votes (Like | Disagree)
Avatar
56 months ago
This can only lead to poorer wages, poorer working conditions and poorer outcomes for all factory workers assembling Apple products. This is completely wrong -- great wages, working conditions and outcomes is what's needed. Disgraceful, Apple.

Has Apple's corporate social responsibilities been completely discarded? People, planet, and profit can exist together if the balance is correct, but this isn't balanced.

On a side note, Apple, how about cut your retail pricing of iPhone, iPad, Mac, etc and absorb the cost of doing so via the incredible profit margins made on each item sold.

#ReasonsNotToUpgrade
Score: 31 Votes (Like | Disagree)
Avatar
56 months ago
"Hey, we're ordering less than last time, so we demand a price cut!"
Score: 16 Votes (Like | Disagree)
Avatar
56 months ago
Really Apple? Tim Cook, the money hungry one. [USER=1013029]@smacrumon[/USER] which will lead to poorer quality, higher defect rates, and in the long run, a shot in the foot for Apple.
Score: 15 Votes (Like | Disagree)
Avatar
56 months ago

The rich get richer!

And the poor get poorer.

Tim Cook, thy name is hypocrite. If you really cared about leaving the world a better place, you would take a salary of $1 like Steve Jobs did, and negotiate a fair wage for your suppliers rather than demanding that suppliers with profit margins far lower than yours are squeezed for every dime.
Score: 13 Votes (Like | Disagree)
Avatar
56 months ago
Yeah, it sucks when you have to pay way more than is necessary doesn't it, Apple? Feels like you're being ripped off doesn't it, Apple?

Hmm.
Score: 13 Votes (Like | Disagree)

Top Stories

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

First Impressions From New iPhone 12 and 12 Pro Owners

Thursday October 22, 2020 4:20 pm PDT by
It's already Friday, October 23, in Australia and New Zealand, which means some customers who purchased an iPhone 12 or 12 Pro already have their new devices in hand. We've seen dozens of reviews of the iPhone 12 and iPhone 12 Pro from media sites, but now first impressions from regular Apple customers are available. Image via MacRumors reader Boardiesboi New iPhone 12 and 12 Pro owners are...

iPhone 12 Pro Allows You to Measure Someone's Height Instantly Using LiDAR Scanner

Saturday October 24, 2020 11:12 am PDT by
iPhone 12 Pro models feature a new LiDAR Scanner for enhanced augmented reality experiences, but the sensor also enables another unique feature: the ability to measure a person's height instantly using the Measure app. You can even measure the seated height of a person in a chair, according to Apple. When the Measure app detects a person in the viewfinder, it automatically measures their...

Apple VP Kaiann Drance Interview Addresses Battery Life, MagSafe, and Power Adapter Concerns

Friday October 23, 2020 3:37 am PDT by
Apple's Vice President of iPhone Marketing, Kaiann Drance, has provided a new interview to Rich DeMuro on the Rich on Tech Podcast, to discuss the iPhone 12 and iPhone 12 Pro. Although much of the interview repeated points from Apple's "Hi, Speed" event, there were a number of interesting tidbits regarding the affect of 5G on battery life, MagSafe concerns, and the lack of a power adapter in...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

Apple Distributing New Heated Display Removal Machine for iPhone 12 Repairs

Thursday October 22, 2020 6:20 pm PDT by
Apple is providing Genius Bars and Apple Authorized Service Providers with a new heated display removal fixture for iPhone 12 and iPhone 12 Pro repairs, according to information obtained by MacRumors from a reliable source. To open iPhone 12 models, technicians will be required to slide the device into a specialized tray, and then place the tray into the high-temperature fixture for two...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...

MagSafe Charger Teardown Reveals Simple Design With Magnets and Charging Coil Encircling a Small Circuit Board

Friday October 23, 2020 7:50 am PDT by
iFixit has today shared a teardown of Apple's new MagSafe charger for the iPhone 12 and iPhone 12 Pro. An X-ray of the MagSafe charger courtesy of Creative Electron reveals the internal charging coil surrounded by a circular arrangement of magnets within the puck. The only seam that iFixit was able to leverage to open the device was where the white rubber circle meets the metal rim,...

PSA: Non-iPhone 12 Models Charge Super Slowly With MagSafe Charger

Friday October 23, 2020 4:11 pm PDT by
Alongside the iPhone 12 models, Apple introduced a new $39 MagSafe Charger that's meant to work with the magnets in the iPhone 12 Pro models to charge them up at a maximum of 15W. The MagSafe Charger is technically able to be used with older iPhones, but it's not a good idea because the charging with non-iPhone 12 devices is so slow. We did two tests with the iPhone XS Max, draining the...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...