Apple Resorts to Buying and Leasing Production Equipment for iPhone 8 to Avoid Supply Delays

Discussion in 'Apple & iPhone News' started by Maura, Jul 16, 2017.

  1. Maura

    Maura iPhoneForums.Net News Team Staff Member

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    Apple investing in equipment for iPhone 8 components.JPG

    According to a report from The Korea Herald, via AppleInsider, Apple has had to buy expensive equipment that is used in the manufacturing of rigid flexible printed circuit boards (RFPCBs) in order to then lease it to its suppliers to ensure adequate supplies of components for the iPhone 8.

    According to the source, the equipment that Apple has been buying is worth “tens of thousands of dollars.” Apple decided to make the investment after one of its three RFPCB suppliers, based in Taiwan, withdrew from the supply chain, leaving its other two suppliers, Interflex and Youngpoong Electronics, who are both based in South Korea, in danger of not being able to fulfil enough orders. Aside from taking the above measures, Apple is also said to be actively looking for another RFPCB supplier in South Korea.

    Apparently, the Taiwanese company decided to cease being one of Apple’s suppliers of RFPCB components due to the complicated production process, stringent quality control requirements, and relatively low profits.

    Image source: Carved Blog

    Source: Apple buying, leasing equipment for suppliers to ensure parts for 'iPhone 8'
     
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