Dive Brief:
- Apple is reportedly seeking to directly set the prices of non-key MacBook parts from third-party suppliers, according to a report from DigiTimes.
- Some of the parts include screws and metallic and plastic parts. The move would give Apple greater control over its own costs and could significantly reduce suppliers' profit margins.
- Apple has not confirmed the move and did not respond to Supply Chain Dive's requests for comment.
Dive Insight:
Despite lack of confirmation from Apple, such a move aligns with Apple's recent procurement shifts to control its supply chain and move some manufacturing in-house.
And it's not just an Apple trend: Boeing has also recently moved some manufacturing in-house and eliminated some contractors to gain better control of its supply chain. These kinds of supply chain shifts can help bigger companies improve their profit margins and lower costs, especially if they are companies with an established market presence and little direct competition.
According to DigiTimes, Apple's decision has nothing to do with MacBook sale performance and everything to do with greater pricing control. This shift would mean Apple communicates directly with third-party suppliers, effectively nixing the middleman.
With Apple already going straight to the source for cobalt for its iPhone batteries, this could be a warning for middlemen along Apple's supply chain.