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



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.

Suppliers have enjoyed lots of success off the back of Apple’s iPhone sales, with each device selling better than the last. Phil Schiller said during a courtroom battle with Samsung last August that we should assume Apple’s latest iPhone will always sell more than all previous versions combined.

But it’s unclear how long that can continue. “Apple appears to be losing a once vice-like grip on its supply chain and Wall Street,” Reuters reports. “Suppliers and investors are struggling to gauge demand for the iconic smartphone as Samsung and up-and-coming rivals grab market share.”

Now suppliers are trying to reduce their reliance on Apple, and they’ve jokingly nicknamed the company “Poison Apple” due to its “ever-moving deadlines” and hard demands.

“‘Apple can do no wrong’ can only work until Apple does wrong,” said Roger Kay, president of researcher and consultancy Endpoint Technologies Associates. “It’s like the rubber band effect. The more you stretch it, the more snap you get coming back.”

Speculation surrounding decreasing demand for the iPhone and a supposed decline in innovation following the death of Steve Jobs 18 months ago has caused Apple’s stock price to plummet. Last week, it fell below $400 for the first time since December 2011.

On Tuesday, the company will announce its financial results for the second quarter of 2013, and analysts are expecting an 8% increase in revenue signaling its weakest growth in years.

Suppliers expect Apple’s new iPhone 5S to enter mass production in June. The device will reportedly offer fingerprint sensor technology, as well as a faster processor and improved cameras. However, one source told Reuters that the handset’s release date may have slipped as Apple seeks out a new coating materiel that won’t interfere with the fingerprint technology.

Apple is also expected to launch a low-cost iPhone this year that could help it claw back some of the market share lost to Samsung. Aimed at budget-conscious consumers and emerging markets, the device is expected to offer a plastic casing, and the same 4-inch display as the iPhone 5.

Source: Reuters

  • gnomehole

    Interesting, considering the iPhone continues to sell more every quarter both in the US and globally. I call BS.

  • Steffen Jobbs

    That name for Apple also works from an investor’s standpoint. Although, instead of “poison” I’d rather use the word “toxic.” I’m not exactly sure what Apple is doing since the company is being run like a covert operation. I do know that the company is losing value faster than most other tech companies on the planet. Hopefully, they’ll start buying back shares faster, but other than that the company is quickly becoming worthless for investors and now component suppliers. I sure hope Tim Cook is enjoying his vacation because no one else is.

    One thing for certain, it probably takes Apple 5X longer to manufacture the iPhone than any other company’s smartphone. Samsung can design and build a dozen smartphone models in the time it takes for Apple to design and build one model iPhone. And as far as Wall Street is concerned, Apple’s iPhone is considered far inferior to the fancy, yet plastic Samsung Galaxy models. Time for more Apple share price downgrades. Tim Cook badly wants to see Apple stock reach $300 this year in order to make the current dividend look larger and set the P/E ratio squarely into the 7s to make the stock look really cheap.

  • Wirehedd

    The way I’m seeing this is that manufacturers are mad that they aren’t being permitted to cut corners and build crappy hardware so when the poorly produced items are sent, seen to be substandard and are returned to the manufacturers, they are angry at being held accountable for the quality of the product they are contracted to produce at the standards they have agreed to produce these products at. As the products are below the standards agreed to the manufacturers are angry that they are expected to eat the loss due to their own poor performance. This is not an Apple failing at all but is a case of one company being angry at being called out for not performing up to the standards they are obligated to maintain. Blame the crappy wages, work conditions, labour conflicts and the quasi-embezzling nature of manufacturing in China. To blame Apple for this is not just ignorant but laughably simplistic. If I contract a company to do a job with very specific quality standards and those standards are not met the job is either being redone or moved to someone else capable of the job. I’m not going to take a loss or eat my own profits because a supplier decided they didn’t want to do their job and I’m not going to accept a poor product that is below what was expected. Who would?

  • CALL_151

    Shouldn’t someone who writes for a living know the difference between “affects” and “effects”?