Apple is adjusting the OEM operating model to increase profits

Discussion in 'Apple iPad News' started by RaduTyrsina, Nov 22, 2013.

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    It’s a known fact that Apple’s CEO, Tim Cook, is a master of the supply chain, often referred to as an operational genius. Now, according to a new report by DigiTimes, Apple’s relationship with its OEMs (original equipment manufacturers) has been changed. Apple’s manufacturing partners are no longer responsible for component procurement and production, as Apple will use its own sources to ensure a better supply of components.

    Thus, Apple cuts an unnecessary intermediary which will result in an increase in profits. Max Wang and Joseph Tsai with the DigiTimes publication say the following:

    They also added the following info, which shows that OEMs won’t be decreasing their profits, but will actually see a slight increase:

    But one thing that Tim Cook and his team can’t manage to solve is the short supply of the iPad Mini 2, which is allegedly being blamed on Sharp for its inexperience in accommodating Retina display panels to the iPad Mini size.

    Source: DigiTimes

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