Apple abandons Taiwanese supppliers for China to cut iPhone production costs

The move by Apple has led many Taiwanese suppliers to provide services to other sectors.

Majority of smartphone makers across the world have the pressure to be as good and as Apple’s iPhones; likewise Apple is now facing the heat to be as affordable as others. In a bid to decrease production costs followed by the overall cost of the phone, Apple has switched most of its supply makers from Taiwan to China.

The effect of the switch, however, has not been too good for the Taiwan-based suppliers. The decision by Apple has led many such Taiwanese suppliers to provide services to other sectors. According to a report by DigiTimes, battery manufacturers such as Simplo Technology are now having to look at alternate industries to stay afloat and are developing, producing batteries for electric bikes and battery modules for data centers. On the contrary, Chinese battery makers, Desay Battery Technologies and Sunwoda Electronic are making batteries for Apple devices.

An Apple logo seen on a building's facade. Image: Reuters

An Apple logo seen on a building's facade. Image: Reuters

Similarly, Catcher Technology from Taiwan who used to make chassis for devices like the MacBook, are now offering their services to make high-end devices from Chinese smartphone makers. Apple’s MacBook chassis is now manufactured by China’s Everwin Precision Technology.

This shift from Taiwan to China can help in advancing Apple’s efforts to woo the largest smartphone market in the world, while Taiwan faces the brunt.

Recent rumours reveal that Apple is planning to produce cheaper versions of iPhones, an 11-inch iPad, and a new watch this year. In the coming fall, Apple is expected to launch three iPhones which are a 6.1-inch LCD iPhone, a 5.8-inch OLED model and lastly a 6.5-inch OLED variant with Apple Pencil support.

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