TAIPEI, Taiwan－ According to Taiwan media reports, in order to ensure smooth iPhone 6 shipments, Apple has raised OEM prices for the OEM manufacturers Hon Hai and Pegatron.
Reports state that this time Apple is willing to increase OEM expenditures in hopes of avoiding the problem of having labor shortages in China.
In addition, because assembling the completely new iPhone 6 product line requires a higher level of difficulty than for previous generations of iPhones, Apple is willing to invest more money in assembly.
Compared to the iPhone 5s, assembly costs for the iPhone 6 have increased 25%, which means that by manufacturing four iPhone 6 smartphones, OEM manufacturers can now make the same amount of profit that they made manufacturing five iPhone 5s smartphones in the past.
Industry insiders believe that Apple’s announcement of OEM price increases will not only encourage OEM manufacturers to “eat Apple” in the short term, but will also have the effect of encouraging OEM manufacturers to crowd out one another for labor and orders.
In the long term, there will a tendency for the big brand name manufacturers to get bigger and more firmly established.
