Apple has a new plan for cutting down manufacturing costs

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MacBook butterfly keyboard
Apple is now handling ordering for even tiny components like MacBook screws.
Photo: Apple

Apple is known for exerting a lot of control over the manufacturing of its products, and it’s reportedly set to ramp up this control even further.

Beginning with its new MacBook models, Apple will reportedly carry out direct pricing negotiations for the screws and assorted non-key metallic and plastic parts used on its devices, which are currently purchased directly by its contracted supply partners.

This is likely to further squeeze extra savings out for Apple, since other companies will no longer be able to add on extra costs for sourcing these components. It could cost suppliers 10-15 percent of their profits. This is the first time Apple has exerted this level of control.

Some unnamed Taiwan supply chain partners for the MacBook (possibly Foxconn) were supposedly told of the changes in late May at a meeting at Apple’s headquarters. Previously, Apple only screened the name lists of third-party suppliers for these minor components and then inspected their quality and shipment schedules.

The explanation for the change reportedly has nothing to do with the sales performance of the MacBook, and is a more general initiative aimed at further lowering production costs.

Hey, you don’t get to be the most valuable company by not watching the pennies!

Source: Digitimes