Apple is looking to tighten its hold over the supply of parts that manufacturers use for its products, according to a new report from Digitimes citing supply chain sources. Right now, ‘non-key’ components like screws are sourced autonomously by third-party partners with Apple approving suppler lists and quality assurance at the end. The new report says Apple will directly set pricing and order volumes of downstream parts, in a move that gives Apple even more control over how its products are made and will likely squeeze the profitability of supply chain partners.
The news was reportedly disseminated to some of Apple’s Taiwanese manufacturers in May. The new policy is expected to come into effect later this year with Apple’s forthcoming MacBook updates.
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