Apple Cracks Whip on iPad Parts Prices | Cult of Mac

Apple Cracks Whip on iPad Parts Prices



In a bit of high-tech one hand washes the other, Apple is putting the squeeze on its suppliers, asking parts makers for a 10 percent price cut in light of huge demand for the iPad, according to a Tuesday report.

“Since Apple’s tablet PC shipments are expected to grow 70 percent sequentially to 8 million units in the second quarter, significantly benefiting related upstream component suppliers, Apple has demanded its suppliers provide cuts in return,” reports the Chinese-language Economic Daily News.

Manufacturers targeted include those producing touch panels, battery components and optical parts, the report adds. The request by Apple to lower iPad part prices doesn’t appear to be a one-time event. Even deeper cuts are expected to be required for the next financial quarter, when the Cupertino, Calif. firm will likely increase shipments, the publication writes, citing parts makers.

Given that Apple dominates the supplies of most of these components, we have a feeling Cupertino will get its way here. Don’t expect that 10% savings to be passed onto you this generation, though.