There’s an interesting new report out discussing Apple’s strategy to make its iPhones, iPads, and MacBooks cheaper. It seems the brand is turning more and more to Chinese suppliers instead of Taiwanese ones because the former is offering the same service at a lower rate.
Industry sources told DigiTimes that Taiwan brands used to rely on Apple for their revenue, but the company has revamped its marketing plans over the past few years. Instead of catering only to high-end premium consumers, it’s started setting its sights on mid-range buyers as well.
Apple’s New Cost-Control Strategy
There is some evidence of this in the real world, what with the release of the iPhone SE, low-cost 9.7-inch iPad, and upcoming budget MacBook Air. This shift has apparently prompted Apple to become more concerned about production costs.
Introducing more Chinese suppliers allows Apple to have more control over prices. Whether or not it will pass on these benefits to customers is still up for debate. This year’s iPhone lineup is expected to be cheaper than last year’s, so perhaps its new strategy is working.
For instance, the 5.8-inch OLED iPhone X (2018) might start at $899 rather than $999. There’s a new 6.1-inch LCD iPhone 9 which will probably go for $699. Finally, Apple may be planning a new 6.5-inch OLED iPhone X Plus and sell it at $999.
One component which might have gotten cheaper is the battery. Apple used to depend on the Taiwan-based Simplo Technology for iPhone and MacBook batteries, but it’s now allocated most of its orders with the China-based Desay Battery Technology and Sunwoda Electric.
Even long-time MacBook metal chassis maker Catcher Technology has supposedly lost Apple as its star client to the Chinese Everwin Precision Technology. While cheaper rates are always a positive, this change hopefully won’t come at the cost of quality.