> how many fabs in the world could produce the A10? As long as it's more than 1, there can be a bidding war. Sure, timelines and service can be factors, but I

> how many fabs in the world could produce the A10? As long as it's more than 1, there can be a bidding war. Sure, timelines and service can be factors, but I suspect there's a minimum bar that has to be met, and any additional service or convenience doesn't factor into the price. Sounds like manufacturers are catching on though: http://www.bloomberg.com/news/articles/2011-11-03/apples-supply-chain-secret-hoard-lasers http://www.bloomberg.com/news/articles/2011-11-03/apples-sup... > Not every supplier gives in. An executive who works with a major parts manufacturer says that Apple’s bargaining tactics tend to exert downward pressure on prices, leading to lower profits and margins. After months of negotiations, the company declined a $1 billion payment from Apple that would have required the supplier to commit much of its manufacturing capacity to Cupertino’s products. The executive familiar with these talks, who asked not to be named because the discussions were not public, says that while deals featuring $1 billion in cash up front are basically unheard of, his company didn’t want to be too dependent on Apple—and didn’t want to help it deflate prices.