Apple wants its suppliers to explore manufacturing outside of China — and it seems that many in its supply chain are listening.
According to a pair of new reports, Compal and Quanta, who make the iPad and MacBook for Apple, are looking overseas for future production.
Compal Electronics will be the primary supplier of the next-generation iPad mini, which is expected to launch sometime this year, according to a new report.
The manufacturer is in the process of expanding production capacity with the expectation of increased shipments and revenues in 2019, despite “clouded” economic prospects.
Excitement over the iPhone 8, and Apple’s better-than-expected iPad sales, have driven a number of Apple suppliers in Taiwan to experience massive growth in the last financial quarter.
Taken in their entirety, the strong financial performance of Apple’s suppliers was enough to increase Taiwan’s overall export revenue to the United States in July by a massive 12.5 percent year-on-year in U.S. dollars. For those keeping track at home, that’s pretty darn impressive!
Apple is reportedly paying the legal costs of four of its assemblers, Foxconn, Pegatron, Wistron and Compal, as they challenge Qualcomm in court.
In a filing made late Tuesday in the U.S. District Court for the Southern District of California, the Apple suppliers allege that Qualcomm has violated two sections of the U.S. antitrust law, the Sherman Act.
Qualcomm has asked a court to force iPhone suppliers to keep paying it royalty payments while it is in the middle of its standoff with Apple.
The tech giant has updated one of its lawsuits to include what it claims is additional evidence about Apple instructing third-party suppliers not to pay money they owe to Qualcomm. Qualcomm suggests that this is an underhanded tactic on Apple’s part to force it to settle sooner.
Qualcomm has filed a complaint against manufacturers Foxconn, Pegatron, Wistron and Compal as part of its ongoing conflict with Apple.
In a statement given today, Qualcomm noted that while iPhone makers Foxconn, Pegatron, Wistron and Compal don’t dispute “their contractual obligations to pay for the use of Qualcomm’s inventions, the manufacturers say they must follow Apple’s instructions not to pay.”
Scoring Apple orders is a great thing if you’re a manufacturer, but don’t expect an easy ride!
The latest example of this is Quanta Computer, which up until now has been the chief supplier of the Apple Watch. However, according to a new report, Apple has decided to hand over 20-30 percent of Apple Watch orders as a way to”decrease Quanta’s price bargaining power.”
Apple has reportedly added a second Apple Watch supplier to its manufacturing chain.
Until now, Quanta Computer has been the only assembler of Apple’s wearable, but Compal Electronics is expected to begin shipping Apple Watch Series 1 and Series 2 units in the second half of 2017.
