Apple expected to adjust orders to upstream partners to maintain profits and reduce risks
Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Monday 20 April 2015]

Apple is expected to adjust orders to its upstream partners for iPhone 6 and Apple Watch components in the third quarter to minimize the risk of putting all its eggs in one basket as well as maintain gross margins, according to sources from the upstream supply chain.

The sources noted that Apple has invited Compal Electronics and Wistron to join its supply chain to manufacture some of its products and is expected to adjust its order ratio to the two major PCB partners Zhen Ding Tech and Flexium as the two have been competing for orders with price cuts.

Zhen Ding is expected to see a recovery in revenues in the third quarter, while Flexium is expected to achieve weaker growth in revenues.

However, players that have advantages in technology such as Largan Precision and Advanced Semiconductor Engineering (ASE) are expected to continue enjoying strong orders from Apple.

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