Apple’s cost-cutting strategy draws ire of Chinese supply chain

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Tim Cook meeting an iPhone manufacturer in China.
Tim Cook meeting an iPhone manufacturer in China.
Photo: Apple

With iPhone demand slowing down, one of the ways in which Apple is hoping to increase earnings is by pushing its suppliers to work for less money — but it doesn’t seem to be going entirely to plan.

According to a new report, Apple is meeting resistance from manufacturers in its Taiwan-based supply chain as it requests that they lower quotes for iPhone 7 components by as much as 20 percent.

Apple pushes suppliers to take a price cut to secure orders

Tim Cook meeting an iPhone manufacturer in China.
He's a shrewd operator is Tim Cook!
Photo: Apple

Unsurprisingly for a company with the kind of success Apple has experienced, it is quite adept at driving a hard bargain.

According to a new report, Apple has been trying to maintain its high gross margin at a time of slowing smartphone demand by asking its suppliers to work for less money. Major suppliers Largan Precision, Foxconn and Pegatron Technology have all been affected.

iPhone 7 Plus may not get dual-lens camera after all

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iPhone 7 mockup
The iPhone 7's dual-lens camera could be a game changer.
Photo: Martin Hajek

Buying the iPhone 7 Plus might not be as big an upgrade as some Apple fans were hoping for this fall.

Apple has allegedly decided to scrap plans to include a dual-lens camera sensor on the back of the iPhone 7 Plus, according to the latest rumor from China that claims the tech isn’t quite ready.

iPhone maker replaces half its factory workers with robots

Tim Cook greeting Foxconn workers in China. Photo: Apple
Tim Cook meeting with (human) Foxconn workers.
Photo: Apple

Apple manufacturer Foxconn has been talking about investing in robots for years now, but apparently it’s finally done it — replacing more than half of the employees at one of its factories with machines.

“The Foxconn factory has reduced its employee strength from 110,000 to 50,000, thanks to the introduction of robots,” said a government official, adding that “it has tasted success in reduction of labour costs” and that more companies are now likely to follow suit.

iPhone 7 production orders may far exceed expectations

iPhone_6 Plus_Frozen_Snow
iPhone manufacturing might not be experiencing quite the cold snap we think it is.
Photo: Ste Smith/Cult of Mac

What decline? Apple watchers may be viewing 2016 as the year iPhone numbers finally fall off, but that doom narrative is contradicted by a new report suggesting that Apple has placed far higher than expected numbers for iPhone 7 production for this year.