Apple tells component suppliers it wants a 10% discount

Jun 21, 2011
12

I would imagine in the computer component and hardware world, landing Apple for your firm is a big deal. I would also imagine when Apple asks for a price cut rather than lose the contract you probably render unto Jobs what Jobs wants and cut the price. Apple has reportedly demanded that its component suppliers cut their quotes by 10%. The suppliers the cut is said to be asked of cover a lot of hardware used in Apple goods.

DigiTimes reports that the price cut was asked of Apple's component suppliers that provide things like PCBs, optical hardware, battery modules, and touch panels. The news come from a Chinese language paper called Economic Daily News. Apple is expecting its shipments of computers to grow to the tune of 70% sequentially to 8 million units in Q2. With the greater demand comes the purchase of more components and Apple wants a price break.

DigiTimes reckons that with shipments of Apple gear forecast to continue to grow in Q3 that more cuts may be demanded. I am sure that Apple wants to protect margins and that is part of the reason for demanding cuts. However, I suspect that had Apple went into the deal with the higher supplies they would have received better pricing from suppliers and Apple is just wanting those discounts now.


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