Apple has put some pressure on its iPad parts suppliers to cut down prices by 10% for Q2 2011. The company has not taken this decision because it is running on a shoestring budget, but because it is planning to place extra orders with its parts suppliers, PC Mag (opens in new tab) reveals, citing Economic Daily News, a Chinese-language economic and business newspaper.
As orders increase, it is only natural to demand price reductions when buying parts. The Cupertino-based company has increased its Q2 shipments by 70% compared to the previous quarter. The company has therefore demanded a discount for the additional volume orders.
Apple has sent the price cut requests to various parts suppliers which provide the iPad manufacturer with printed circuit boards, battery modules, touch panels, optical components etc. The iPad 2 is manufactured using parts supplied by Samsung, STMicroelectronics, Toshiba, Broadcom, Dialog Semi, Texas Instruments and Cirrus amongst others.
The American tech giant is expected to further increase its volume orders in Q3, which means it could demand more discounts from its suppliers. Apple’s demands should be good news for consumers because the price tag for iOS products may drop a bit following the parts discounts; on the other hand, they could just pocket a bit of extra profit following the recent drop in stock value.