- Mac News
Nov 20, 2013 03:19 PM
Apple taking over procurement duties at suppliers, report claims
Apple is taking over parts procurement duties from its manufacturing partners, <em>Digitimes</em> claims. The company has reportedly been able to secure better parts through its own sources, cutting out intermediaries and raising profit margins. Taiwan-based manufacturers previously reaped extra income from the procurement process, but Apple has <A href="http://www.digitimes.com/news/a20131120PD205.html?mod=3&q=APPLE">allegedly</a> softened the blow by letting them raise quotes, which could drive their profits up 3 to 5 percent in the near term. In the future, manufacturers also won't have to maintain their own standing parts inventories.<br /><br />Apple is known to maintain relatively tight controls on supply, often signing long-term deals to ensure it has the parts it needs at a price it wants. If it runs into yield problems, it will add or switch suppliers as necessary to meet pre-planned launch windows. Selecting its own component suppliers may not only offer Apple a price advantage, but still closer control of the supply chain.
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