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iPhone maker Wistron quits, saying Apple didn't let it make a profit

9to5mac.com

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Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#41

Post by avmich »

crooked-v wrote: post #35
ly3xqhl8g9 wrote: post #20

Earlier quoted context omitted.

At least our current surface finishing technology has advanced so we no longer see the kid sized hand prints [1]. "Apple’s cobalt batteries are built on the backs of child labor in mines, causing severe physical harm to children and violating international standards of human rights." [2] Their PR: "Apple will use 100 percent recycled cobalt in batteries by 2025" [3]. [1] Kid sized hand prints on old victorian roof ti…

You seem to be assuming that 3 is a lie, but I'm pretty sure someone would notice if Apple wasn't actually changing the sources of their rare earths.

Cobalt is not a rare earth. Changing sources happens gradually, mostly not overnight.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#42

Post by unicornmama »

cush wrote: post #24

Apple is so huge that they treat their manufacturers like a freelance design contracts... "We'll let you build our devices. We can't pay you, but think how amazing it will look to have Apple in your portfolio!"

It might appears unfair from Apple's side to take advantage of their position. However, hardware manufacturers do not resemble naive and exploited children. Commoditized vendors experience pressure to zero their margins from their largest customers. Every big customer does this (Wallmart, Google, Amazon, etc.) It's textbook business strategy.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#43

Post by avmich »

cush wrote: post #24

Apple is so huge that they treat their manufacturers like a freelance design contracts... "We'll let you build our devices. We can't pay you, but think how amazing it will look to have Apple in your portfolio!"

Capitalism. If manufacturers can't count their beans, who'll do that for them? Of course same applies to actual freelance persons - where the dynamics is substantially different.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#44

Post by bdidbdidhdidh »

mannyv wrote: post #8

"We didn't understand our costs, so we underbid and now are blaming Apple." - Wistron

you really think apple gives a detailed build instruction on the bid war moment?

it probably is a room full of parts and to win you have to commit to the non present parts too.

just like fashion production bids btw

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#45

Post by throwaway09223 »

CharlesW wrote: post #31
s1mon wrote: post #26

Earlier quoted context omitted.

Yes, that's certainly a valid reaction, and is likely partially true. It's also true that Apple is very well known for very hard negotiation and squeezing their suppliers until there's only a few percent margin. You'd have to be insanely good at controlling all of your costs to make money all the time under that constraint. If yields change or component/material prices fluctuate the wrong way any predicted profit cou…

> It's also true that Apple is very well known for very hard negotiation… No successful company is over-paying suppliers.

Successful companies overpay suppliers all the time - especially if they're growing very fast and are focused on scaling growth over cost efficiencies.

Large companies who've already scaled up their products are more incentivized to focus on cost cutting.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#46

Post by beambot »

crooked-v wrote: post #35
ly3xqhl8g9 wrote: post #20

Earlier quoted context omitted.

At least our current surface finishing technology has advanced so we no longer see the kid sized hand prints [1]. "Apple’s cobalt batteries are built on the backs of child labor in mines, causing severe physical harm to children and violating international standards of human rights." [2] Their PR: "Apple will use 100 percent recycled cobalt in batteries by 2025" [3]. [1] Kid sized hand prints on old victorian roof ti…

You seem to be assuming that 3 is a lie, but I'm pretty sure someone would notice if Apple wasn't actually changing the sources of their rare earths.

Tracing the source of materials is very non-trivial. Even diamonds, where UUIDs are commonplace, still have to manage the influx of blood diamonds into the global supply chain.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#47

Post by steveBK123 »

avmich wrote: post #40
A4ET8a8uTh0 wrote: post #36

Earlier quoted context omitted.

Some context may be needed. Walmart is known in MBA circles for being one of the first companies to have used detailed data on products to negotiate new terms with suppliers ( usually to suppliers detriment ). Information asymmetry with main goal to increase a chance for an increased leverage is what it is all about.

I wonder if the supplier can similarly have the detailed data on the customer and how that helps in negotiating both ways.

It's asymmetrical for the most part on a lot of stuff Was listening to Bloomberg the other day and they were talking about how Walmart is the biggest grocer in US. They have pricing power because for example they constitute something over 5% of all Heinz sales. Similar for paper products from one of the big companies like Procter & Gamble.

The inverse is not true, as you are unlikely to find any vendor who Walmart makes 5%+ of all their sales dollars off of.

So Walmart can generally turn to any of these vendors and say - we will evaporate 5% of your sales overnight if you don't give into demand, and send all our orders to some competitor.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#48

Post by ly3xqhl8g9 »

crooked-v wrote: post #35
ly3xqhl8g9 wrote: post #20

Earlier quoted context omitted.

At least our current surface finishing technology has advanced so we no longer see the kid sized hand prints [1]. "Apple’s cobalt batteries are built on the backs of child labor in mines, causing severe physical harm to children and violating international standards of human rights." [2] Their PR: "Apple will use 100 percent recycled cobalt in batteries by 2025" [3]. [1] Kid sized hand prints on old victorian roof ti…

You seem to be assuming that 3 is a lie, but I'm pretty sure someone would notice if Apple wasn't actually changing the sources of their rare earths.

PR means Public Relations and I meant nothing more than the fact that it is an Apple official response. Certainly says something about our times when you directly expect PR to be lies.

They might just as well change their sources now, or after 2025. The trillions are already in their banks; the children that mined until now are dead or close to; we, the consuming public, have been compromised because we like shiny toys (I own quite a few Apple products, at least a dozen children, they are so frail, must have been murdered to manufacture them); all is great. All that's left is to think of a truly unimaginable science fiction story: a $2.7+ trillion company is found guilty for the death of one single child and the company is dissolved.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#49

Post by MichaelZuo »

MuffinFlavored wrote: post #25
buescher wrote: post #21

If Wistron was having quality problems, as has been rumored about iPhone production in India [1], this could have been the sort of deal where both sides lost. [1] https://www.theapplepost.com/2023/02/26/apple-disappointed-w...

what portion of apple assembly for things like macbook/watch/iphone aren't 100% done by machine, and if they aren't 100% done by machine (which they aren't), it sounds extremely not easy to do by hand (especially at scale, for "low wages") what parts can't they automate?

Most of the final assembly is done by hand. Hence why so many people are needed in the final assembly factories of Foxconn, Wistron, etc.

Re: iPhone maker Wistron quits, saying Apple didn't let it make a profit

#50

Post by MichaelZuo »

paulryanrogers wrote: post #32
actionfromafar wrote: post #27

Earlier quoted context omitted.

Only suckers formally know anything .

There be dragons. Better a high trust society with some checks and balances than one ruled by "don't write down anything" sociopaths.

Which one do you think you currently live in?
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