Apple’s success and high performance One of the important factors in the presentation of the device is that the configurations of the devices do not change. Running an application in hundreds of different configurations and running an application to get the most out of a single configuration are quite different things. Apple also develops operating systems to provide maximum performance in these fixed configurations.

who want to maintain this important competitive advantage? Apple, is determined to use the power it has against its suppliers to the fullest. The company, which has absolute bargaining power because its suppliers need Apple, can make many demands on its suppliers.

Apple’s “Extreme Loyalty” Demand

During the pandemic period raw material prices despite the sharp increase Applecould make demands that made it difficult for its suppliers. They also left 34 Chinese suppliers out of Apple’s business last year without explanation. In general, working with Apple does not seem easy.

To make changes to the screen design sooner BOO cancel the agreement with Apple, to produce their own and he wants them to increase production on time. Although there will be a change, so will Apple improve needs. In other words, when a step is taken, the company demands that they be informed first.

In addition, reflected price also rises There is another point that attracts Apple’s response. Chip manufacturer experiences 10% to 20% cost increase from TMSC It is alleged that Apple, which immediately rejected the request for a 3% price increase, threatened to transfer its production to Samsung. Apple, TMSC with $14.8 billion It is the customer with the largest commercial volume.

On the other hand, Apple made offers from its suppliers in 2016. 20% He asked them to download. oppose it Foxxcon was also removed from the vendor list and agreed to lower their bids before partnering with Apple again. In summary, it may be necessary to make serious sacrifices to work with the giant Cupertino company.