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Apple Suppliers Including Pegatron and Foxconn Under a Lot of Pressure for Cost Reductions

In a report that was sent out by Digitimes, the claims that have been made is pertaining to the fact that the suppliers of Apple are said to be under a lot of pressure in order to reduce the costs. Major players that have been affected due to this pressure that is coming from the company are Pegatron and Foxconn. There has also been cases where in suppliers have been added to help in the price reduction. On this front, one such news that had hit the headlines was about the gearing up that has been happening in Sharp for OLED displays wherein they would be competing with LG and Samsung. It is said that for the upcoming iPhones, Apple is planning to use them.

Apple Suppliers Including Pegatron and Foxconn Under a Lot of Pressure for Cost Reductions

There was another post that had been made by one of the biggest British suppliers, where in the history of their company, they reported the largest loss that the company had incurred. Imagine Technologies, which is a chipmaker had posted that on a turnover of around $158M, they had just $81M. The GPU designs of the company are used for the A9 and A9X chips of Apple.

In their official statement, they stated that in the semiconductor market, the say a significant slowdown during the financial year’s first half. The reason that had been provided by them was due the saes of weaker smartphones apart from the economic slowdown in general and even the build up in China of the inventory.

In Imagination Technologies, one of the shareholders of the company is Apple. Back in March, there were rumours about the fact that Apple may just outright acquire the company, even the confirmation was given by Apple about the fact that at that time they did not have in plans in making an offer and there were talks that did take place.

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