Apple 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
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.
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.