14 DAY TRIAL // The new Apple is reportedly focusing more than ever on more affordable products at a time when its top iPhone costs more than $1,000.
As a result, the company is said to be looking into ways to reduce the final price of its devices by cutting down the production costs, in the end maintaining the same profit margin.
One such method could be directly negotiating the price of non-key components with suppliers. A report from Digitimes indicates that the company has already briefed several partners in this regard, as it wants to reduce pricing for screws, metallic and plastic parts for new MacBook models.
The cited source says could this impact profits of companies generated by the purchase of materials by as much as 15 percent. Several suppliers attended a meeting in late May at Apple’s headquarters to be informed of the new policy, it adds.
Cheaper products on their way
Reducing manufacturing costs could indeed be a way to make devices more affordable, though, for the time being, it’s not yet clear how and if this strategy is going to work. This is the first time Apple plans to carry out direct pricing negotiations for non-key parts, as all purchases were previously the responsibility of its contracted supply partners.
Apple is said to be working on a more affordable iPhone that could be launched as soon as this year. The device will sport an LCD screen (versus the other models coming with OLED) measuring 6.1 inches, and boast new-generation features like Face ID and edge-to-edge panel. On the other hand, it could lack 3D Touch and a glass body.
At the same time, a cheaper MacBook is also believed to be in the works, though in this case, fewer details are available. The company is said to be looking into building a 13-inch model coming in the second quarter of the year with lower specs but positioned as a replacement to the MacBook Air.