In order to assemble its new iPhones, Apple has decided to expand its partnership for this year with Wistron.
Apple’s plan and hidden actions
By pitting Wistron against incumbent Foxconn, Tim Cook will be able to squeeze the supply chain more and take value while risking making customers angry at the lack of purity of the iPhone experience.
The suppliers playing against each other give Apple the possibility to lower its material bill as well as they are willing to reduce its cost as a method of winning the contract.
The final manufacture process was split between Foxconn and Wistron, and Apple is also setting up an “internal competition.” It will take place between Qualcomm and Intel over the cellular modems that are used inside the handset and over the OLED displays, between LG and Samsung, that is about to be used in 2018’s iPhone X Plus and iPhone X. The reason behind Apple’s actions is to increase its average avenue per handset and its own margins by stressing suppliers.
Apple wants to maintain growth but taking into consideration the static sale of the iPhone it can only put its hands on a cheaper and more efficient supply chain. It all makes sense if you do not miss the details.
Unfortunately, this move does not come without risks or modifications, so it is going to affect iPhone’s simplicity, Different levels of power, battery life and quality are offered by the wide range combinations of internal parts, but no iPhone buyer can know for sure everything they are spending their money on. From a mixed up supply chain, the users do not know if the phone they receive will be as expected.
To sooth the geekerati, Apple used to maintain its horizon of focus on quality control, but because of late complaints about poor battery life or faulty keyboard that require $700 repair bill, Tim Cook decided to improve his ability of decision making.
Now with all these rumors spread, buyers are wondering if they need to buy their iPhones in September in order to benefit from a high-quality phone and not one made out of free parts. They are also taking into consideration that it is worth thinking twice before spending $1000 on a phone that might not suit their expectations or at least the iPhone’s description.