5 ms·
Apple does help its suppliers to make a profit -- but the amount of profit that sustains a healthy set of vendors for Apple, at quality levels and corporate pra
by supernova87a 3y ago
Apple does help its suppliers to make a profit -- but the amount of profit that sustains a healthy set of vendors for Apple, at quality levels and corporate practice levels that Apple evaluates as "fair".
Now, you may criticize that this holds vendors over a barrel and squeezes them to narrow margins, etc. But at least give Apple credit for having a view to the long run and trying to create a pool of vendors that it can rely on in a sustainable way, and not just some surge capacity for the next quarter only to drop them. Apple thinks longer than that. Their procurement function is quite skilled.
And it's not like the vendors would magically have some source of business at better terms than Apple that would be good for them in the long run either. You want suppliers to somehow be raking in great margins in excess of what was "fair"? You want an employer who's more clueless and lets you make lots of extra on the top?
A successful supplier to Apple knows what it's capable of and what its costs are, signs on to grow with Apple and become successful, and share in the practices that make a company efficient, skilled, productive. They can choose to join this train. Or not. It's voluntary.
- rullelito 3y agoVendor says they can't make profit. Wall-of-texter on HN says they can.. So hard to know who to believe..
- lotsofpulp 3y agoGiven that Apple has delivered tons of devices into people’s hands for well over a decade and continues to do so, I am going to go with the common sense that Apple’s suppliers must be earning a profit, otherwise they would not be doing charity work for Apple.
- madeofpalk 3y ago> Back in 2020, there was a major riot at its Bangalore plant over underpaid wages, with millions of dollars’ worth of damage done. Both the Indian government and Apple investigated, and both found that Wistron was indeed guilty of serious labor law violations, including underpayment of its workers. I’m not sure either are a great source to be honest.