Apple Asks Suppliers, “Is That A Bit of an Exaggeration?” said

Apple’s success and high performance One of the important factors in presenting the device is that the configurations of the devices do not change. Running an application in hundreds of different configurations and running an application to get the most out of a single configuration are quite different things. Apple also develops operating systems to give maximum performance in these fixed configurations.

who want to maintain this important competitive advantage apple, is determined to use the power it has against its suppliers to the fullest. The company, which has absolute bargaining power due to the fact that its suppliers are in need of Apple, can make a lot of demands from its suppliers.

“Extreme loyalty” demand from Apple

During the pandemic period raw material prices despite the significant increase applewas able to make demands that made it difficult for its suppliers. They also left 34 Chinese suppliers out of Apple operations last year without explanation. In general, working with Apple does not seem easy.

For making changes to the screen design before BOE canceling its agreement with Apple, to make their own production and he wants them to raise the production on time. Although there will be a change, Apple also to approve needs. In other words, when any step is taken, the company demands that they be informed first.

In addition, reflected price increases too There is another point that attracts Apple’s reaction. Chip manufacturer experiencing a 10% to 20% cost increase of TMSC It is stated that Apple, which directly rejected the request for a 3% price increase, threatened to transfer its production to Samsung. Apple, TMSC with $14.8 billion It is the customer with the largest commercial volume.

On the other hand, Apple made offers from its suppliers in 2016. 20% He asked them to download. opposing it Foxxcon was also removed from the supplier list and agreed to downgrade their bids before working with Apple again. In summary, it may be necessary to make serious sacrifices to work with the giant company from Cupertino.