Apple has purchased expensive production equipment worth tens of millions of dollars and is leasing it back to suppliers to ensure it gets the rigid flexible printed circuit boards it needs for the iPhone 8, reports The Korea Herald.
Apple had originally planned to secure the parts it needs for the OLED iPhone from three suppliers; however, a Taiwanese supplier recently backed out of the deal.
The exact reason why the Taiwanese supplier withdrew from the deal with a big client Apple was not revealed. But sources say the firm may have felt a pinch on the tricky production and strict quality requirements along with low profitability.
The RFPCB is more difficult to make then a conventional flexible PCB and Apple needs the parts for the touch screen of the new iPhone.
“To fill the loss, Apple is supporting the other two suppliers, both Korean, to beef up production,” said the source.
Apple is expected to order 100 million RFPCBs this year. Korea's Interflex and Youngpoong Electronics will reportedly share the orders.
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Apple had originally planned to secure the parts it needs for the OLED iPhone from three suppliers; however, a Taiwanese supplier recently backed out of the deal.
The exact reason why the Taiwanese supplier withdrew from the deal with a big client Apple was not revealed. But sources say the firm may have felt a pinch on the tricky production and strict quality requirements along with low profitability.
The RFPCB is more difficult to make then a conventional flexible PCB and Apple needs the parts for the touch screen of the new iPhone.
“To fill the loss, Apple is supporting the other two suppliers, both Korean, to beef up production,” said the source.
Apple is expected to order 100 million RFPCBs this year. Korea's Interflex and Youngpoong Electronics will reportedly share the orders.
Please follow iClarified on Twitter, Facebook, or RSS for updates.
Read More