Taiwanese suppliers refuse to lower their quotes for iPhone 7 components

By , Aug 19, 2016

iPhone 6s Plus iFixit teardown image 002

Apple may be forced to amend its purchasing policy when it comes to securing various components that go into its handsets, according to a report Friday by trade publication DigiTimes.

The company’s policy of constantly squeezing profits from suppliers has been challenged by Taiwanese companies who have now refused to lower their quotes for iPhone 7 parts.

Suppliers like advanced packaging technology maker Advanced Semiconductor Engineering (ASE), along with many others under the Foxconn Group, reportedly told the iPhone maker that they “could not be able to accept orders without reasonable profits”.

Apple on its part is said to have pitted Chinese firms against their fellow Taiwan-based counterparts in an effort to get Taiwanese suppliers to lower their prices. DigiTimes asserted that the move might make no sense since the quality of parts rolled out by Taiwan- and China-based suppliers “is standing at different levels.”

Interestingly, neither high-end CMOS maker Largan Precision nor semiconductor foundry Taiwan Semiconductor Manufacturing Company (TSMC), which fabricates Apple-designed chips and Touch ID modules, were asked to reduce their quotes because it is “difficult for Apple to find alternative sources” to replace these two firms.

Foxconn, which assembles Apple products, won’t need to sacrifice its margins to work with the Cupertino firm as the group is expecting lucrative orders regarding Sharp-made displays (Foxconn has recently acquired Sharp).

Photo courtesy repair wizards over at iFixit.

Source: DigiTimes

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  • Matt

    Steve Jobs would just pull out of these companies– as large as they are, Apple got discounts because they were the best and they made sure everyone knew it. As soon as suppliers heard about the TV companies standing up to apple they probably decided to do the same. Apple is falling as a power, if they want to stay on top they need to be more aggressive in every way.

    • Shinonuke


    • Zen Kaojarern

      I think it’s Apple who has been forcing profits from these little companies, and I think it’s pretty normal for the big firms. But I think it has come to a point where they just can’t lower the price and not they don’t want to.

  • Agil1ty

    I wouldnt mind if Apple would fall as a power. RIght now they are selling tech from 3 years ago for a premium price (see macbook line up). At the same time their iPhones are overpriced too… They make a whole lot of profit of chinese and taiwan producers…