suppliers

Read Cult of Mac’s latest posts on suppliers:

Wall Street worries put the hurting on Apple’s suppliers too

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iPhone 8 Foxconn box
A whole lot of companies rely on Apple.
Photo: Feng

It’s not just Apple which relies on, well, Apple to make money. There’s a whole ecosystem of other companies orbiting the giant Cupertino sun, too. And they’re all affected by whatever news raises or lowers Apple’s share price.

That’s what took place this week when Wall Street’s latest wobble about Apple sent out shockwaves through the supply chain. As a result, a whole lot of companies which do business with Apple suffered their own sympathy stock declines.

Apple suppliers’ stock price hit hardest by slumping iPhone sales

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Foxconn Wisconsin
The benefits of being an Apple supplier might be overrated.
Photo: Foxconn

Being an Apple supplier can be a curse as much as a blessing for some Chinese companies.

While earning Apple’s business can give a big boost to a company’s stock, a new study found that Apple’s suppliers saw their share prices drop significantly lower than Apple’s stock did during the recent iPhone sales slump.

iPhone suppliers rebound after Apple’s monster earnings

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Apple waives developer fees for nonprofits, others in 8 additional countries
A giant ecosystem of companies rely on Apple.
Photo: Ste Smith/Cult of Mac

Reports about lower-than-expected demand from Apple’s suppliers was one of the reasons so many people were predicting doom for the iPhone X.

But now that Apple has announced its crazy strong earnings for the quarter, Apple’s suppliers are enjoying a welcome boost to their stock prices — with shares rising by more than 14 percent in one case.

iPhone suppliers aren’t expecting business to pick up any time soon

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Tweak this iOS setting to make iPhone speakers louder. (Works with iPad and iPod, too!)
This year's iPhone production hasn't been seamless.
Photo: Ste Smith/Cult of Mac

iPhone component orders for Apple’s suppliers aren’t likely to pick up until the third quarter of this year, a new report suggests.

It’s just the latest bit of bad news in a series of recent reports suggesting that Apple is slashing orders for its present generation iPhones, and may be leaving manufacturers with excess inventory.

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

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Foxconn employees accused of $43 million iPhone scam
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.

Weak iPhone demand punishes Apple suppliers

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iPhone 6 Plus
Apple isn't the only one suffering due to weak iPhone sales.
Photo: Ste Smith/Cult of Mac

Weak demand for the iPhone is causing earnings to fall for a number of suppliers in Asia, and few of them are hopeful that the situation is going to change.

Foxconn, the biggest assembly partner for the iPhone, saw its profit fall 9.2 percent last quarter, while Pegatron’s nosedived a whopping 35.1 percent.

Apple starts ordering Apple Watch 2 components

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Apple's diversifying its supplier base for the next-gen wearable.
Photo: Eric Heisuman

There may be disagreement over when exactly Apple Watch 2 will arrive, but Cupertino is confident enough about its plans to start divvying up component orders among companies in its supply chain.

In keeping with its recent strategy, Apple is looking to diversify its supply chain for the second-gen wearable by taking on additional manufacturers.

Apple Profit Probably Fell For The First Time In A Decade

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Tim Cook, Phil Schiller and others sold Apple stock at a time when it was hitting record highs.
Tim Cook, Phil Schiller and others sold Apple stock at a time when it was hitting record highs.

Apple’s quarterly profit probably fell for the first time in over a decade, thanks to new products with lower profit margins and a slowing demand for the iPhone, Bloomberg reports. Fourteen analysts have reduced their estimates for Apple in recent weeks, and on Friday, the Cupertino company’s share price fell below $400 for the first time since December 2011.

Apple Nicknamed “Poison Apple” By Suppliers As iPhone Demand Becomes Unpredictable

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Apple’s hard-to-meet high standards and its low price expectations have earned it the nickname “Poison Apple” with Asian suppliers, who say they are feeling the affects of decreasing demand of the iPhone. Several have told Reuters that they are trying to reduce their reliance on Apple amid increasing competition from companies like Samsung.

iPhone 5S Components To Begin Shipping In May Ahead Of A Q3 Launch [Rumor]

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Apple’s suppliers are to begin shipping components for the next-generation iPhone by the end of May, ready for the handset’s launch during the third-quarter of 2013, according to sources in the supply chain. As suspected, the device won’t be a major upgrade, the sources claim, but rather a “slightly enhanced” version of the iPhone 5 that’s likely to be called the iPhone 5S.

WSJ: Apple Has Begun Early Testing Of Television Set Designs With Suppliers

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I hope it looks like this.
I hope it looks like this.

Apple has begun testing high-resolution television set designs with manufacturing partners in Asia, according to a new report from The Wall Street Journal that cites unnamed sources within Foxconn. Both Foxconn and display manufacturer Sharp are said to be involved in the process, which is still in its early stages.

iPhone 5 Sales Expected To Top 45 Million Units In Q4 As Production Rates Improve [Rumor]

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Productions rates for the iPhone 5 are improving, supply sources claim, just in time for the handset to make its debut in more than 50 additional markets throughout December. Now that Apple has caught up with demand, the handset’s shipping delay has been reduced from four weeks to just 2-4 business days. Suppliers now expect the Cupertino company to sell 45 million iPhone 5 units during the fourth quarter alone.

iPhone 5S Production To Begin In December As Apple Battles Against Supply Constraints [Report]

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The iPhone 5 is less than two months old, and Apple is already preparing to build its successor.

Following the supply problems Apple has faced with the iPhone 5, the Cupertino company is reportedly woking to ensure that it is better prepared for the iPhone 5S by trialling production way ahead of the handset’s public release. According to one Chinese newspaper, it will begin production of up to 100,000 iPhone 5S units this December.

Apple Suppliers Now Shipping 13-Inch Retina MacBook Pros, Refreshed iMacs [Report]

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Waiting for its little brother? The wait could soon be over.
Waiting for its little brother? The wait could soon be over.

Itching to get a Retina Mac, but worried the 15-inch MacBook Pro is too big? Well you may not have to wait too long for the 13-inch model. According to one report, Apple’s suppliers have already begun shipping the 13-inch Retina MacBook Pro, and refreshed iMacs ahead of their launch in the coming months.

Adding New Dock Connectors To All iOS Devices This Fall Is A Manufacturing Impossibility

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In today's forecast: Lightning!
There's a good reason why this new dock connector won't be coming to all iOS devices this fall.

It seems like Apple’s sixth-generation iPhone will be the first iOS device to boast a brand new, mini dock connector when it launches this fall. But there have been rumors that claim Apple will refresh all its iOS devices to make the new connector a standard across its entire lineup.

Not only does this seem highly unlikely, but there’s one reason why it’s an impossibility: Apple’s supply chain just couldn’t handle a refresh that big.

WSJ Confirms Amazon Is Testing A Smartphone That Could Enter Production This Year

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Amazon hopes to expand its mobile reach with a new smartphone.
Amazon hopes to expand its mobile reach with a new smartphone.

Following earlier rumors that claimed Amazon is gearing up to launch a smartphone that will rival Apple’s iPhone, The Wall Street Journal has confirmed with sources that the retail giant is currently testing the device with its suppliers, and that it could enter production as early as the end of this year.

WSJ: The iPad Mini Is Coming, Will Enter Production In September

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What the iPad mini may look like up against its siblings.
What the iPad mini may look like up against its siblings.

Following yesterday’s report from Bloomberg that revealed Apple plans to release the long-awaited iPad mini this September, a new report from The Wall Street Journal has this morning added even further credence to those claims.

According to “people familiar with the matter,” Apple’s suppliers are preparing for mass production of a new iPad with a display smaller than 8 inches, which is expected to begin in September.

WSJ: New iPhone With Display Of ‘At Least 4 Inches’ To Enter Production Next Month

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It may not look exactly like this, but you can expect Apple's next iPhone to ship with a larger display.
It may not look exactly like this, but you can expect Apple's next iPhone to ship with a larger display.

With so many contrasting rumors in recent weeks, it has been hard to predict whether or not Apple will increase the size of the display for its sixth-generation iPhone. But according to sources for The Wall Street Journal, the Cupertino company is preparing to break away from its existing 3.5-inch panels in favor of a display measuring “at least 4 inches diagonally.”

Apple OKs Environmental Groups To Inspect Their Factories

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With worker overtime now reduced, Foxconn simply can't assemble as many iPads as it used to.
With worker overtime now reduced, Foxconn simply can't assemble as many iPads as it used to.

While investigations into the working conditions in its Chinese factories still underway, Apple has now commissioned an independent environmental group to review its supply chain and identify any environmental concerns. The reviews are set to begin next month, and will focus on the environmental impact of factories belonging to Foxconn and one other unnamed supplier.

WSJ: Apple Is Working With Suppliers To Test 8-Inch iPad Mini

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How would a smaller iPad fit into Apple's iOS product lineup?
How would a smaller iPad fit into Apple's iOS product lineup?

With so many rumors surrounding a smaller iPad of late, even the most skeptical amongst us are beginning to believe. The latest reports comes from The Wall Street Journal, which claims Apple and its suppliers are currently testing a new tablet with a smaller screen said to be around eight inches, that will “broaden its product pipeline amid intensifying competition.”

Former Exec: Apple’s Commitment To Secrecy “Conflicts” With Humane Factory Working Conditions

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While Apple has been actively seeking to improve the working conditions for employees at the Chinese factories manufacturing its products, a former executive for the Cupertino company believes it could do more. The trouble is, Apple’s infamous secrecy is getting in the way.

“We’re trying really hard to make things better,” said one former Apple executive. “But most people would still be really disturbed if they saw where their iPhone comes from.”