Apple overhauls OEM operating model, sources say

“Apple has been adjusting its OEM operating model from OEMs being responsible for both component procurement and production, to purely production, according to Taiwan-based OEMs,” Max Wang and Joseph Tsai report for DigiTimes.

“Since more suppliers are becoming capable of supplying components for Apple’s products, the US-based vendor has recently started adjusting its upstream partners in order to preserve more profits for its products,” Wang and Tsai report. “Apple has also agreed to let its OEMs raise quotes to maintain their gross margins, and the plan is expected to increase OEMs’ profits by 3-5%.”

Wang and Tsai report, “However such a change is expected to relieve OEMs from bearing component inventories and reducing their pressure.”

Full article here.


    1. This story is a tabloid nonsense since Apple was procuring components itself for years already, nothing new happened in this field. Apple buys Gorilla glass for Foxconn’s cut and assembly facilities, Apple buys huge volumes of aluminium, Apple designs and subcontracts manufacturing of batteries (then to be transferred to Foxconn and Pegatron for assembly), and so on.

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