According to a new report from Digitimes, Apple is looking to reduce its reliance on 1-2 major suppliers by securing contracts with other manufacturers.
“Apple is planning to split its upstream orders among 2-3 makers instead of relying on only 1-2 major makers, in an effort to avoid the risk of placing all its eggs in one basket,” Aaron Lee and Joseph Tsai report for Digitimes. “Electronics manufacturing service (EMS) providers will be the first to be impacted by the new strategy.”
“Apple is reportedly inspecting its EMS partners currently and is said to have already invited both Wistron and Compal Communication to join its manufacturing roll,” the report explain.
The report also highlights that this new strategy will not only add flexibility in the supply chain, but may also help the company’s operating margin.
“Through the strategy, the sources believe that Apple is trying to start an operating model with flexibility and more profits,” Aaron Lee and Joseph Tsai explain. “However, even if Apple decides to add new partners, these suppliers are unlikely to start delivering orders until 2014 or 2015 since Apple’s partners are all required to establish independent product lines specifically for the company.”
