Simplo Technology Under Pressure by Chinese Companies for Apple's Next-Gen iPhone Battery Business
According to a new supply chain rumor, Taiwan-based Simplo Technology is coming under strong pressure from China makers in competition for Apple's battery orders for the next-generation iPhone.
Simplo and China-based Desay and Sunwoda are currently the battery suppliers for the iPhone 6/6 Plus, according to sources from the upstream supply chain.
The sources pointed out that Apple has been increasing its adoption of China components. The US vendor used to have Taiwan makers supply most of its battery modules, but Taiwan's shipment proportion has been dropping over the past few years and has already been surpassed by the China competitors.
Simplo originally expected to be able to secure its orders for the new iPhone battery orders for the second half of 2015, but may not be able to do so as China battery makers' technology and production capacity have both been improving, the sources explained.
The sources noted that Apple's decision on battery orders hinges on the makers' ability to secure sufficient supply of quality battery cores. They also need to have strong management of manufacturing processes and capacities, as well as client relationships.
While Simplo may still have an upper hand in terms of screening battery cores and client relationships, the China competitors have already caught up in terms of sufficient battery core supply and production capacity, the sources said.
But China's battery module makers have been improving their capability of screening battery cores, heaping more pressure on Taiwan makers, the sources noted.
Taiwan makers are still the main battery supplier of Apple's Mac series products, but shipments of Mac series products are far lower than those of the US vendor's mobile products, making such an advantage less significant in helping offset their losses in the mobile product segment, the sources added.
About Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments. Comments are reviewed daily from 4am to 7pm PST and sporadically over the weekend.
Comments