A new report by Digitimes says that Apple is in the process of deepening its ties with Chinese supply-makers amid higher demands and tough economic times up ahead, the report states:
Apple reportedly has deepened its cooperation with China-based supply chain makers for not only ramping up its shipments to China but also further reducing its overheads, according to Taiwan-based handset supply chain makers.
The cooperation is likely to cover a number of new iPhone models and other devices to be released in the future, said the sources without going into details.
By leveraging the supply chain in China, Apple also aims to tighten its control over production costs through volume purchases, added the sources.
Apple is expected to ramp up the production of AirPods Pro at China-based production partner Luxshare-ICT, which is also likely land orders for Apple Watch later, said the sources.
Profit derived from global handset sales decline 11% on year to US$12 billion in the third quarter of 2019, with Apple accounting for 66% of the total earnings, according to Counterpoint.
This isn’t the first move by Apple this holiday season to try and steady out the filed, earlier this month we learned that Apple was increasingly adding pressure on supply makers to increase production, while also find an equilibrium for production costs.