“When Apple Inc. Chief Executive Officer Tim Cook unveils the company’s new smartphone tomorrow, he will also crown the latest winners in the iPhone economy,” Adam Satariano and Peter Burrows reports for Bloomberg.
“For makers of screens to suppliers of power amplifiers, the iPhone serves as a trophy for companies in the behind-the-scenes business of supplying Apple with components for its devices,” Satariano and Burrows reports. “With $171 billion in sales in its last fiscal year — on par with the gross domestic product of Vietnam — Apple plays kingmaker by picking who provides semiconductors, graphics processors and other parts, helping to determine the fate of companies from California to China.”
“Apple has a reputation as a tough negotiator with suppliers and has shown little loyalty if it can get a better price or more advanced technology elsewhere, said Francis Sideco, a senior manager at IHS Inc., which studies components used in the iPhone,” Satariano and Burrows reports. “‘They aren’t in it for charity,’ Sideco said. ‘Apple typically hasn’t shown any undue loyalty to any one supplier, and just because you’re the guy that’s there, they aren’t going to stick with you because you’re the incumbent.'”
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