Having Apple on your side can, unsurprisingly, be a massive boon to any manufacturer. But don’t try and play hard ball with Cupertino — as the Taiwan-based Largan Precision could be about to find out.
According to a new report, Apple may shift 30 percent of its orders for the lens modules for the iPhone 6s away from current contractors Largan Precision to Japanese rival company Kantatsu, over Largan’s refusal to lower its prices.
As a manufacturer, you’d think that choosing the week of the new iPhone launch would be a good time to plant a flag refusing to offer Apple favorable pricing — or further discounts — on your products. From the sound of things, though, Apple is more than willing to join Largan in a game of “who will flinch first?”
Taking away 30 percent of Largan’s orders isn’t the same as switching manufacturers altogether, of course, but it’s still enough to wreak havoc with a manufacturer banking on receiving orders for at least the next year.
Market watchers claim that Largan’s revenues for September will be negatively affected by the loss of any iPhone 6s orders, and suggest that the company have difficulty achieving further growth as a result.
As we saw when GT Advanced Technologies revealed Apple’s one-sided terms for manufacturers, life as an Apple supplier can sometimes be tough. But when you’re in a market in which other companies would do virtually anything to get a piece of the iPhone action, you’re not exactly in the best position to dictate terms.
Them’s the breaks, as I’ve heard it said.
Source: Digitimes
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
14 responses to “Apple shows iPhone 6s lens supplier who’s boss”
BIG companies carry a big stick and they’ll use it whenever they can if someone/thing gets in their way of making a profit or more profit. The ALL do it.
That’s how apple makes it’s money. Pay as little as possible for out of date camera technology, but charge the customer top dollar
And yet, mysteriously, iPhone cameras take the best photos. Hmmm.
How do you know…Apple told you?
Look at DPReview, idiot.
So sony’s new Z5 23mp camera is worse that an iPhone 6s 12mp camera. DPReview think everything is brilliant, idiot
“Out of date camera technology” that somehow outperforms every other smartphone camera in the world. Pretty impressive.
I mean the entire phone is pretty much out of date according to you guys, yet somehow manages to outsell everyone else. I know…sheep!
Bullies.
No it’s not. If you don’t do, someone else will. No one forces you to do anything. You either lower your price to get volume or vice versa
Idiot.
Thx for keeping it classy!
Just being succinct.
As others have said, this is what all companies in powerful positions do. This is what people in powerful positions do. This is what countries in powerful positions do. It has always been the case and it always will be. When you have the upper hand, you get to call most, if not all of the shots.