Apple said to be moving big share of production to Foxconn

Jan 15, 2018 09:22 GMT  ·  By

Apple wants Foxconn to be in charge of a bigger part of the MacBook manufacturing process, so the company is now giving the final touches to a plan of transferring orders from Quanta Computer during the course of this year.

Currently the biggest MacBook manufacturer with approximately 79.5% of the production, Quanta is said to be looking elsewhere already in order to compensate from the loss and minimize the impact of Apple’s decision. Quanta is at this point the number one supplier for notebook makers HP, Acer, and ASUS.

DigiTimes says Apple started the production shift in the second half of 2017, as the firm outsourced the assembly for components to Foxconn’s plans in Shenzhen.

Foxconn helping reduce production costs

One of the reasons Apple wants to rely more on Foxconn is the reduced costs, while at the same time the company can also lower the risks of issues, as Hon Hai Precision Industry (Foxconn’s parent firm) is a long-time partner and the biggest manufacturer of the iPhone.

The report adds that Apple is unlikely to launch a new MacBook upgrade this year, and the biggest change that takes place in the supply chain is this shift to Foxconn for more orders. Despite the change, Quanta will remain the largest MacBook manufacturer, it writes.

According to IDC data, Apple managed to increase its PC sales in the fourth quarter of 2017 by 7.3% (quarterly market share of 8.2%), reaching 5.7 million units during the quarter. HP was the leading company with 23.5% market share and sales of 16.5 million units.

In the meantime, Apple might have other problems to worry about on the MacBook front, as the company is being accused that it’s overstating laptop standby battery time in official figures. Customers claim the MacBook lasts half as much as Apple states, as it loses nearly 15 percent a day even when the device is shut down.

PC sales in the fourth quarter of 2017

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Foxconn helps reduce MacBook manufacturing costs, report claims
PC sales in the fourth quarter of 2017
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