Apple’s iPhone Assembly Partners Consider Price Increase for Rival Customers
Apple is alleged to have placed orders for up to 70-80 million iPhones, an incremental increase compared to iPhone 5 orders. This also means that the companies, like Foxconn, in Apple’s supply chain are currently working at full capacity to meet production deadlines.
This has prompted Foxconn, Pegatron and Wistron to come with a plan: they will increase the price of smartphone assembly by 5% – 10% for customers other than Apple, according to the Taiwanese media (via Digi Feng).
The report also cites fear of rising prices, because this could easily mean fewer customers, but it emphasizes that the aforementioned companies are working to fulfill Apple’s large orders, at least until October.
Apple is fast becoming a major contributor to Taiwan’s economy, the company will pay up to $150 per iPhone for components and assembly. This means roughly $26.9 billion in combined revenue for Taiwanese companies.
Referring back to Q3 projections for Asian companies in Apple’s supply chain we can see that the guidance is mostly positive, except for TPK, a company which recently updated its guidance pushing the higher revenue estimate back to the fourth quarter, an act which fueled rumours of a late launch of the iWatch, alongside the 5.5-inch iPhone 6.