Suppliers putting Apple first

It's not just silicon. It's voice coil motors, wire winding and more.

From William Gallagher's "Strong iPhone 13 sales make camera suppliers prioritize Apple" posted Wednesday on AppleInsider:

Demand for the new iPhone 13 range has seen Taiwan-based camera component suppliers give priority to Apple over Samsung, and Chinese phone companies.

Apple has previously benefited from processor manufacturer TSMC prioritizing it during the global chip shortage. Now camera lens component companies are also electing to service Apple's requirements, specifically because of demand for the iPhone 13.

According to Digitimes, Taiwan-based makers of camera components such as voice coil motors, wire winding, and more, are seeing higher and more stable profits from Apple.

My take: An army may move on its stomach, but our devices move on their supply chain.

6 Comments

  1. Steven Noyes said:
    That is what happens when you don’t panic, plan for the future, don’t cancel orders and understand things will recover. That is the actions you take to stay first in line.

    5
    September 30, 2021
  2. Fred Stein said:
    While Apple has reputation (who knows if this is true) of tough on their suppliers, note the Digitimes point that Apple is more profitable as a customer

    More importantly is the long-term value of being an Apple supplier. TSMC, under Morris Chiang, a true visionary, made a bold move years ago to compete with Samsung’s foundry. Samsung had far larger capital to tap into. Their Apple win/win partnership now pays off handsomely. One may recall Steve Jobs talking the CEO of Corning into accelerating Gorilla Glass in Issacson’s bio of Steve.

    The site, Semiwiki, has an excellent podcast on the evolution of TSMC. (22 minutes)

    4
    September 30, 2021
    • Gregg Thurman said:
      Apple offered TSMC financial help (with strings) to expand. TSMC politely declined the offer, thereby not being obligated to Apple except as TSMC saw fit. It was a good move for both of them.

      1
      October 1, 2021
  3. David Emery said:
    A corollary to The Golden Rule (Who Has the Gold, Makes the Rules) I’m sure suppliers are contractually obligated to put Apple first to win Apple’s lucrative large scale business. Yet another advantage of Apple’s supply chain management.

    1
    September 30, 2021
  4. When I show up with many cases of my honey at various farmers markets, like I did today, workers stop unloading pumpkins and corn. The manager prioritizes unloading & stocking my honey because it sells so well. Farmers that must wait longer fully understand. One farmer bought a jar while the manager paid my invoice.
    Note: Farmers markets still won’t let honey customers pay me using some other payment method. I can’t setup my own market inside their tent either, Mr. Sweeney.

    4
    September 30, 2021
  5. Gregg Thurman said:
    I can’t set up my own market inside their tent either, Mr. Sweeney.

    LMAO I am.

    1
    October 1, 2021

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