The Wall Street Journal is reporting that Apple (NASDAQ: AAPL
) is looking to expand its supplier base. The company may be looking to
grow its stable of contract manufacturers to assemble devices for it, and the
resulting increase in production would help it better meet demand. Apple
product launches hindered by supply constraints are all too common these days. However,
it's worth noting that bottlenecks around necessary components could still
potentially hold back production.
Foxconn has caused considerable harm to Apple by
association. There has been much controversy around its labor practices and
other human rights issues, from which Apple may want to distance itself.
Additionally, having more suppliers compete for business can drive down prices
and Apple would benefit from cost savings. Foxconn is reportedly uninterested
in cutting its prices.
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