Apple using lower parts quotes, new suppliers to keep up high profit margins - report

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  • Reply 21 of 35
    LoneStar88lonestar88 Posts: 325member

    xixo said:
    wizard69 said:

    Sadly I suspect there is a lot of truth in this.  I do hope that Apple hasn't fallen victim to the Wall Street disease.  
    When SJ ran things, pleasing the customer was the focus. Now that TC runs things, pleasing the shareholder is the focus.
    Horse pucky!
    nolamacguyfastasleep
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  • Reply 22 of 35
    jungmarkjungmark Posts: 6,928member
    Shocked! In other news, water is still wet. 

    Seriously, why wouldn't Apple go for the lowest price for quality parts?
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  • Reply 23 of 35
    jungmarkjungmark Posts: 6,928member

    xixo said:
    wizard69 said:

    Sadly I suspect there is a lot of truth in this.  I do hope that Apple hasn't fallen victim to the Wall Street disease.  
    When SJ ran things, pleasing the customer was the focus. Now that TC runs things, pleasing the shareholder is the focus.
    Yup. No complaints during the Jobs era. FYI, the margins were high under Steve. 
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  • Reply 24 of 35
    tzeshantzeshan Posts: 2,351member
    Is Apple trying to buy the dual camera module at the same cost of one camera module in iPhone 6S?  
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  • Reply 25 of 35
    Rayz2016rayz2016 Posts: 6,957member
    jurassic said:
    How dare a business run itself like a business, and try to optimize it's expenditures... (only if it is Apple
    And everyone else does the same. At some point cost cutting has to impact quality no?

    Yes, if you allow it to.
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  • Reply 26 of 35
    Rayz2016rayz2016 Posts: 6,957member

    cropr said:
    jurassic said:
    How dare a business run itself like a business, and try to optimize it's expenditures... (only if it is Apple
    I don't mind that Apple tries to reduce the cost of the components it needs to build an iPhone.  But I would appreciate that these reduced costs are reflected in the selling price

    Well, it won't be. The selling price is determined by the demand for the product. If the demand drops then Apple lowers the price. They won't drop the price because they're cheaper to make. What's the point of doing that?
    fastasleeppscooter63
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  • Reply 27 of 35
    appexappex Posts: 687member
    appex said:
    No surprise here. Other times Apple uses high-quality parts like RAM and SSD, yet charge 2 to 3 times more for the very same make and model. Just check out upgrades on Apple store. Shocking!
    Let's see.  A certain aspirational car model I own needed it's Bluetooth module replaced.  Said module was a couple of C-notes.

    That's how it goes with aspirational brands. Maybe you should have researched a little more carefully before jumping in?  I mean, there's always alternatives.

    Having it both ways isn't a right.
    You did not get it. Exactly the same make and model available elsewhere for 2 to 3 times less.
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  • Reply 28 of 35
    maestro64maestro64 Posts: 5,043member

    Japanese suppliers are not known for poor quality and low yield, actually the opposite thus the reason they tend to charge I higher price. Everyone wants to go with the lower price supplier and Apple being the King of the supply chain knows you can not trust all your business to the lowest price supplier because they could go out of business any day. Unless they are giving you and only you the lower cost and making up with all the other customers. If your largest customer is only 10% of your business and the other 90% as a large number of small customer it easy to give the 10% guy a low price because you are making it up on everyone else. However the Japanese are well known for take business from the low price customer and giving it to high price customers.

    If you never worked in supply chain, trying to sort this out is next to impossible being on the outside. This is what Tim cook keeps telling people to stop trying to read the supply chain tea leaves.

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  • Reply 29 of 35
    nolamacguynolamacguy Posts: 4,758member
    xixo said:
    wizard69 said:

    Sadly I suspect there is a lot of truth in this.  I do hope that Apple hasn't fallen victim to the Wall Street disease.  
    When SJ ran things, pleasing the customer was the focus. Now that TC runs things, pleasing the shareholder is the focus.
    utter and complete bullshit. 
    sricefastasleep
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  • Reply 30 of 35
    nolamacguynolamacguy Posts: 4,758member

    cropr said:
    jurassic said:
    How dare a business run itself like a business, and try to optimize it's expenditures... (only if it is Apple
    I don't mind that Apple tries to reduce the cost of the components it needs to build an iPhone.  But I would appreciate that these reduced costs are reflected in the selling price
    they are. it's why they don't get more expensive with inflation. 
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  • Reply 31 of 35
    cnocbuicnocbui Posts: 3,613member

    cropr said:
    I don't mind that Apple tries to reduce the cost of the components it needs to build an iPhone.  But I would appreciate that these reduced costs are reflected in the selling price
    they are. it's why they don't get more expensive with inflation. 
    What inflation?  I remember seeing some a decade ago, but not lately.
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  • Reply 32 of 35
    macxpressmacxpress Posts: 6,006member
    xixo said:
    wizard69 said:

    Sadly I suspect there is a lot of truth in this.  I do hope that Apple hasn't fallen victim to the Wall Street disease.  
    When SJ ran things, pleasing the customer was the focus. Now that TC runs things, pleasing the shareholder is the focus.
    Where exactly is the proof in this?
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  • Reply 33 of 35
    bestkeptsecretbestkeptsecret Posts: 4,335member
    cnocbui said:
    iPhone - made from the cheapest parts available.  How comforting.  Good thing that you you don't get what you pay for.

    Why should it bother you? You won't buy an iPhone anyway.
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  • Reply 34 of 35
    kevin keekevin kee Posts: 1,289member
    I don't see anything wrong here. Business 101: lower cost = more profit. As long as Apple keep their QA standard high, I don't care which suppliers they pick. While cheap quality always synonym with low cost, low cost does not necessary mean cheap quality. I know for a fact that some companies (especially in Asia) were willing to drop their prices as long as they could have a deal with Apple, sometimes for small unknown companies, dealing with Apple means more than just profit.
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  • Reply 35 of 35
    cnocbuicnocbui Posts: 3,613member
    cnocbui said:
    iPhone - made from the cheapest parts available.  How comforting.  Good thing that you you don't get what you pay for.

    Why should it bother you? You won't buy an iPhone anyway.
    I won't buy one for myself but I did buy a used iP5 for my daughter and offered to get one for my son but he wanted an LG.  Screwing your supply chain can have negative consequences.  Apple reportedly approached TSMC and asked them to dedicate all their capacity to Apple and TSMC refused.  I suspect they well knew of Tim Cooks past maneuvers to screw suppliers by funding tooling contractually reserved to them then demanding they reduce their margins to almost nothing on threat of using another supplier, or something like that.  There was an eye-opening article on the practice I read a few years ago but it appears to have been removed from the internet as best I can tell.
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