With the recession in sight, Apple puts more pressure on suppliers. The companies that supply Apple with the lenses for the cameras used on the back of iPhones are expected to experience a challenging first quarter. Not due to a drastic drop in orders, but due to complicated negotiations with the Cupertino company. This was reported by the analyst Ming-Chi Kuo who has good contacts in the Asian production chain, environments according to which Apple intends to limit the damage of the alleged 2023 financial results, to the detriment of its suppliers.
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To counter an expected economic downturn next year, Apple plans to put even more pressure on its suppliers. The analyst explains that it is not an unusual move and that the company led by Tim Cook has always tried to constantly reduce production costs and increase its margins; the search for profitability is now more important than ever, due to an expected general deterioration in the economic outlook. The attack on photographic lens suppliers is not accidental but according to the analyst it is due to the fact that these are the ones that have the best gross profit margins and in Apple’s view they should commit more to their prices.
The above would not be Apple’s only decision to reduce operating costs over the next year. On the iPhone side, the company would have decided to delay and perhaps even cancel the release of a new iPhone SE. A choice that would be motivated by several reasons, in particular by the desire to save on the development costs of a new smartphone in the coming months.
Among the most obvious measures to save money, a squeeze on the wallet would also be foreseen. We are not talking about layoffs but about “freezing” (at least for now) new hires for most departments. Key sectors, such as those involved in research and development, would – for the time being – be exempt from the cuts.
