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Apple reportedly squeezing 'iPhone 7' parts suppliers for better pricing

New supply chain reports suggest that Apple is putting pressure on Taiwan-based part suppliers to lower prices for "iPhone 7" components, despite reportedly ordering lower quantities.




In an editorial published by supply chain monitor DigiTimes, Apple is said to be seeking price points for components similar to prices from China mainland-based parts suppliers. The companies are said to be resisting, citing a lack of sufficient profit if they meet Apple's demands.

Apple is said to be seeking as much as a 20 percent cut in pricing. Order volumes are claimed to be 30 percent lower from the Taiwan suppliers than previously placed for construction of the iPhone 6s family of devices last year.

The report also claims that Taiwan Semiconductor Manufacturing company (TSMC), and Largan Precision are excluded from the demands.

TSMC is said to be Apple's exclusive "A10" chip foundry for the "iPhone 7." Largan Precision has historically supplied camera modules for the iPhone.

Digitimes has a spotty track record of picking out Apple product specifics. However, the venue has a good handle on the overall supply chain, useful for sussing out trends and larger industry factors, like this alleged supply chain demand.

The "iPhone 7" in question is expected to debut in an event in early September. Besides just excising the analog headphone jack, differences between the new model and the iPhone 6 family include camera improvements, enhanced fast charging capability, and a base 32GB of device storage.