Apple Adopting Strategy to Decrease the Production Cost of its Future iPhone, to Offer Better Value for the Costumer

                Its just few days ago we reported that Apple has plans to ramp up its mass production for the  three new 2018 iPhone models which is expected to launch in September and the company will discontinue iPhone SE and iPhone X smartphone this year (here). Now today there were report from Forbes which suggest that Apple is looking to extend its partnership with Wistron  to assemble the new 2018 iPhone models.
               According to the report Apple  intend to increase the competition against its current manufacturers Foxconn by adding the Wistron to the supply chain, however it is expected Apple will be able to create more value out of their product and there by decreasing the overall production cost. But this move of adding another manufacturer could gradually run the risk of decreasing customer's trust and the purity of the iPhone experience. By splitting the final manufacturing between Wistron and Foxconn, Apple would be able to increase the competition among's the supplier and could force them to undercut their prices and there by gradually decreasing the overall production cost. These won’t be the only merit of this move, it could also increase the average revenue per iPhone and there by increasing the profit margin with out increasing the price.
              Recall early Apple has also set up internal competition between Samsung and LG over the OLED displays to be used in 2018’s iPhone X and iPhone X Plus. They also set a competition between Intel and Qualcomm over the cellular modems used inside the handsets. Through this Apple aims to maintain its growth, but since the iPhone is a combination of various internal parts offering different levels of quality, power, and battery life, it will be difficult for Apple to ensure both manufacturers are providing iPhone with same quality, while the users cannot be sure that the iPhone they buy (spend over $700-$1000) is the best possible smartphone for their money. 
Share on Google Plus

About Mithundev DP

Hi ,this is Arun the Founder and Editor in Chief at ,He is basically a tech enthusiast and love to spend time with tech gadgets, he is also interested in product design ,in his free time he loved to travel and watch sci fi and fantacy movies.