Apple has puzzled industry watchers by investing tens of millions of dollars in production equipment for iPhone 8’s rigid flexible printed circuit board, which connects chips with parts such as the display, camera and so forth, ET News reported Friday.
The company will use this component for iPhone 8’s touch screen panel.
The reason the move has raised questions is because Apple lacks its own production plant to install the equipment and the fact that it contracted three different suppliers to build this crucial iPhone 8 component, including Interflex and Youngpoong Electronics.
According to a source, one of the three suppliers recently decided to back out for reasons unknown, prompting Apple to take matters into its own hands. The Cupertino technology giant is now leasing the equipment it bought to suppliers to ensure it gets the parts it needs.
Additionally, the company is seeking to find a new supplier in Taiwan.
Sources speculate the supplier likely backed out due to low profitability and Apple’s exacting standards when it comes to production quality. The iPhone maker is expected to order a hundred million units of the rigid flexible printed circuit board for iPhone 8.
“To fill the loss, Apple is supporting the other two suppliers to beef up production,” said the source. Rigid flexible printed circuit boards are much more difficult to build than the conventional ones.
iPhone 8 mockup via iDropNews