According to an article published by Apple Insider a small batch of the company’s famous iPhones may be assembled by Wistron, a partner company similar to Foxconn. Rumor has it that Apple is planning duels between several of its partner in older obtain lower rates for their products. This could, however, end up in a backfire, as users may lose their trust in the quality of the iPhone experience.
It is reported that there are three key sectors from which Apple may benefit from splitting the contracts. This will only function if the choice is not left uncontested by the competing factions in exchange for the share received by each interested party.
While the manufacturers Foxconn and Wistron share the assembling responsibilities, competitions between rivaling suppliers are being staged up in order to grant better price offer for Apple. Samsung and LG are supplied the OLED displays for iPhone X and the plus-size version, while Qualcomm and Intel share the cellular modems included inside the devices. In this context, more suppliers are pressured in order to further reduce the finite price per device.
Apple built its fame based on one thing: a unified platform in both hardware and software, assembled at the highest standards and delivered to customers worldwide. The main purpose of any company is indeed to be profitable, but profit has never been an issue for Apple since the first iPhone launched back in 2007. And while price-cutting is an industry staple, the only beneficiary this time will be the stock owners.
Having components from different companies may also lead to other problems. Before, when a customer bought an iPhone, he was assured that each and every device on the market is built with the exact same components and offers the same performance. In the light of using different suppliers, the future customer will be in doubt whether he device with Y component is as good as his friend’s device with X-components.
We can only hope that this is not the beginning of the end.
Hunter Texidor was born and raised in Toronto. He has written for Billboard, The Prague Post and Passport Magazine. In regards to academics, Sage earn his BBA from Mcmaster in Hamilton. Hunter covers business and economy stories here at Billionaire 365.