Apple Seeking 20% OLED Panel Price Cut for iPhone 18 Pro Max

[CWallace]

What most of you miss in capitalism is that the pricing mechanism is very subtle, but highly effective. Competition and consumer demand drive everything without you even realizing it. There is no other system so efficient at producing the highest quality product for the lowest price.

The invisible hand...

 

[Unregistered 4U]

I wonder if Apple will lower quality control requirements to help offset cuts to component pricing. Less displays rejected off the production line means suppliers getting paid for more units produced.

People should be inspecting their new iPhones very closely in September. 😛

They won’t have to. In the broader market, other manufacturers will be selling fewer phones due to “reasons”.Apple’s simply saying, “We’ll pick up your excess capacity… for a price.” They’ll make less than they WOULD have made, but more than not shipping panels to anyone.

Of course, that’s assuming an iPhone meant for release later THIS year is still having “what screen will we use” sorted out. I guess it’s just down to the fact that leakers really need everyone to believe that Apple, which owns no factories, are able to make production decisions this late and still have millions upon millions ready for the preorders and for shipping a week later.

Next month, “Apple’s trying to get a better price on the modems that will go in the new iPhones. If they don’t get that figured out, it might delay the release of the phonnnnnnnnnzzzzzuh!”

EDIT: It could also be written as “The Elec needs to improve their SEO”.

 

[Lerxt]

Why would anyone buy the iPhone 18 anything when the 20th anniversary model is a year later?

 

[triumvirate]

He's been a top 5 CEO of the last 15 years.

Because he counts beans and manages the flow of the beans very well. I wouldn’t deny that he’s great for shareholders. He isn’t great for the actual users.

 

[Unregistered 4U]

Why would anyone buy the iPhone 18 anything when the 20th anniversary model is a year later?

There are BILLIONS of folks that don’t have iPhones, that want a new iPhone and may decide that they don’t want to wait a year to buy their first iPhone.

Plus, the only time there won’t be a “next” iPhone that’s better, is when the current iPhone is the last iPhone. And, if the iPhone has become that unsuccessful, they wouldn’t want to buy it then, either. 🙂

 

[JM]

So add “lesser quality screens in the future” to the list of five reasons to buy a 17pro now?

 

[michsu]

-$5 for Apple, +$30 for all of us for the hard work they did..

 

[archvile]

And of course Apple will keep everything instead of passing savings to customers. So typical Tim Cook.

That’s typical of ANY company that operates on profit and answers to shareholders.

 

[CWallace]

That’s typical of ANY company that operates on profit and answers to shareholders.

Beyond that, the reason for these cost savings on components with lower demand is to cover the cost increases on components with higher demand. The $10 Apple saves on an OLED screen is not pocketed, but is instead handed over to TSMC or the memory and NAND storage suppliers to cover the higher costs they are charging.

It is also why the price increases were so large. Apple does not want to have to raise prices again in 6-12 months, so they're "pre-loading" the price of future contracts for components that they know will be more expensive than what they had been paying (like this month's new RAM contracts at twice the price of their previous ones).

 

[AAPLbuyback]

Because he counts beans and manages the flow of the beans very well. I wouldn’t deny that he’s great for shareholders. He isn’t great for the actual users.

What is your evidence? More users buy Apple products today than before or they wouldn’t have more success.

It’s really that simple. Your assessment isn’t what actual users think, backed up by the numbers.

 

[thebellnd]

They won’t have to. In the broader market, other manufacturers will be selling fewer phones due to “reasons”.Apple’s simply saying, “We’ll pick up your excess capacity… for a price.” They’ll make less than they WOULD have made, but more than not shipping panels to anyone.

Of course, that’s assuming an iPhone meant for release later THIS year is still having “what screen will we use” sorted out. I guess it’s just down to the fact that leakers really need everyone to believe that Apple, which owns no factories, are able to make production decisions this late and still have millions upon millions ready for the preorders and for shipping a week later.

Next month, “Apple’s trying to get a better price on the modems that will go in the new iPhones. If they don’t get that figured out, it might delay the release of the phonnnnnnnnnzzzzzuh!”

EDIT: It could also be written as “The Elec needs to improve their SEO”.

Other manufacturers aren't using the same displays that Apple has custom designed. They can't just give Apple the excess capacity, they'll need to manufacture to Apple's spec and standards; likely using custom tooling. If Apple reduces standards, and adopts a lesser design and non-custom spec, then yes - there will be some slack they can pick up using industry-standard tooling. This in turn will help suppliers achieve 20% price cuts by running a less expensive manufacture process.

 

[dlopan]

Apple’s gotta get another guy like the one that they used to have in charge of procurement:

Jobs, Cook, Ive—Blevins? The Rise of Apple’s Cost Cutter

Apple procurement executive Tony Blevins’s job is to stare down suppliers and slash prices to the bone. It’s a role increasingly vital to Apple as its iPhone sales slow and the company protects its high margins and status as an operations juggernaut.

www.wsj.com

I was just thinking that. He was pretty much the guy who could get it done

 

[klasma]

They might ship more yellow panels in exchange.