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Apple Seeking 20% OLED Panel Price Cut for iPhone 18 Pro Max
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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”.
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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.
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. 🙂
archvile
macrumors 6502a
That’s typical of ANY company that operates on profit and answers to shareholders.
CWallace
macrumors G5
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).
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
macrumors member
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
macrumors 6502
I was just thinking that. He was pretty much the guy who could get it doneApple’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
klasma
macrumors G4
captainmanzana
macrumors newbie
Displays are contracted well in advance. (Companies don’t want to get to production time next March to find out the parts makers are contracted to other customers.) Assuming there’s any veracity to this report, it wouldn’t be about the screens shipping on the initial batch (again, those were contracted years ago). This would be about reducing the price of subsequent orders running out into next year. If a large number of OTHER companies will be placing fewer orders, they’ll want to keep their Apple contract even if it means lower profit per panel. Better to have Apple paying a lower cost for a panel than choosing the competition for a panel and not getting that revenue.
Again, it’s probably more likely that the folks doing the reporting needed to report something this week to stay relevant. And even if it’s made up, it doesn’t matter because no one’s going to follow up with them on it.
thebellnd
macrumors member
Yes but contracts can usually be renegotiated quite easily if there's upside for both parties. In my highly speculative scenario, Apple gets cheaper displays and more of them. The suppliers gets a cheaper manufacturing process, less panels rejected as defective, and potentially a new contract that runs longer.
Obviously this wouldn't affect iPhones already assembled for the September launch under existing terms.
I don't believe Apple would lower standards so significantly that they risk reputational damage to the brand. But I am curious how they get to a huge 20% cut in costs in a world of global instability where operating costs are only increasing.