Tuesday, June 21, 2011

Apple demands 10% quote cuts from component suppliers in 2Q11, says paper

Apple's suppliers of components such as PCBs, optical components, battery modules and touch panels are reportedly facing pressure from Apple, which has demanded quote cuts of 10% for the second quarter of 2011, according to a Chinese-language Economic Daily News (EDN) report.

Since Apple's tablet PC shipments are expected to grow 70% sequentially to eight million units in the second quarter, significantly benefiting related upstream component suppliers, Apple has demand its suppliers to provide cuts in return, the paper noted.

Since Apple's tablet PC shipments are expected to continue increasing in the third quarter, Apple is likely to demand for more cuts in the quarter, the paper added citing the component makers.

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