Passing Apple Requests Taiwan's Parts Suppliers to Reduce Their Prices by 20%, Refused by Foxconn and other companies

According to foreign media reports, in view of Apple's own industry status and order size, it can always lower the price of component suppliers to a lower level. Recently, news from the supply chain said that despite the decline in orders, Apple still pressured Taiwan's parts suppliers to lower the price of parts and components of the iPhone 7. As a result, Taiwanâ€™s suppliers have begun to rebel against Appleâ€™s continuous downward pressure on prices. .

Taiwanâ€™s â€œElectronic Timesâ€ website reported that compared with last yearâ€™s iPhone 6s series of mobile phone parts orders, this year's Taiwanese suppliers received orders for iPhone 7 parts dropped by 30%. However, Apple still requires downstream component suppliers to lower their prices by about 20%. Suppliers said that if they meet Apple's requirements, they will not be able to obtain sufficient profits. It is reported that several joint ventures of ASE and Foxconn Group have given a clear reply, saying that it is impossible to accept Apple's orders without a reasonable profit.

The clear position of the two shows that, to a certain extent, it already has certain right to speak and bargaining power. After Foxconn acquired Sharp, it gradually eased its dependence on Apple. The company's business has also grown year by year, and its packaging technology has also been continuously optimized. It has also reached a merger agreement with SPIL to increase the number of customer groups and strengthen its ability to resist risks.

Analysts in the industry said that Apple's request for suppliers in Taiwan to lower their spare parts prices may be due to the rise of mainland suppliers. However, this time, TSMC and Dali Optronics did not receive Apple's price reduction requirements. TSMC is the exclusive OEM A10 chip for the iPhone 7, and Dali Gloss has been providing camera modules for the iPhone, both of which are in an important position in Apple's supply chain.

Of course, the iPhone 7 parts orders in Taiwan fell by 30% year-on-year, which does not mean that the iPhone 7's output has declined. Because Apple will purchase products from many parts suppliers at the same time, the amount of orders between them will also be constantly adjusted.