Rumor: Apple to eat all production cost increases caused by natural disasters in Japan

According to Digitimes, Apple has agreed to eat any and all production cost increases caused by the Japanese earthquake and tsunami disasters.

In return, upstream component suppliers will keep shipments running "smoothly."

Many of the component suppliers buy components from Japan, but Apple's move should help them remain fully profitable in the foreseeable future.

The move should also help Apple see little supply issues for its iPad and iPhone devices.

Additionally, other tablet vendors will likely be squeezed out if they cannot make a similar move, giving Apple an even bigger edge in the market.

Apple currently has over $50 billion in cash.

Written by: Andre Yoskowitz @ 1 Apr 2011 0:59

xbkrypt0n

So this means that they just cut their slice of the pie a little thinner... maybe. Do remember that Apple are one greedy bunch of people. How much profit were they making on every sold product? $100, $200 or more?

1.4.2011 01:08 #1

DVDBack23

Originally posted by xbkrypt0n: So this means that they just cut their slice of the pie a little thinner... maybe. Do remember that Apple are one greedy bunch of people. How much profit were they making on every sold product? $100, $200 or more? Their operating margins are generally in the 30-40 percent range.

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1.4.2011 01:11 #2

KillerBug

I thought apple products were all made in china?

I highly doubt this will hurt apple too much; their devices are all made with old tech that can be built anywhere and for cheap.

1.4.2011 05:26 #3

xboxdvl2

Originally posted by KillerBug: I thought apple products were all made in china?

I highly doubt this will hurt apple too much; their devices are all made with old tech that can be built anywhere and for cheap. foxconn makes apple products.they are one of the richest companies in china/taiwan.Sure there are several other companies that make/manufactor/assemble apple products.

married to my car and computer.both of them have problems.

1.4.2011 05:55 #4

voyager

IPod and Iphone are going to be radioactive.

1.4.2011 14:35 #5

xnonsuchx

Originally posted by DVDBack23: Originally posted by xbkrypt0n: So this means that they just cut their slice of the pie a little thinner... maybe. Do remember that Apple are one greedy bunch of people. How much profit were they making on every sold product? $100, $200 or more? Their operating margins are generally in the 30-40 percent range.
...and generally only a few percent higher than competing products.

1.4.2011 21:57 #6

GryphB

I don't have or own any Apple products, so it's nothing to me. Seems like a big waste of money.

2.4.2011 23:33 #7

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