Supply chain sources have expressed concern about pricing of the new MacBook Air, fearing that it may limit sales of the latest machine …
That concern, however, is driven in large part by new terms Apple has imposed on its suppliers. Historically, suppliers have sourced many of the raw materials and components needed to make their part of the devices. That allowed them a profit margin on materials as well as earning a fee for the assembly work performed for Apple.
Of late, however, Apple has been taking increasing control of the end-to-end supply chain, placing its own orders for materials which are then delivered to suppliers. That move makes financial sense for Apple, which is able to reduce costs, but leaves suppliers entirely dependant on the production fees paid by the Cupertino company. The 2018 MacBook Air appears to be the first implementation of the new approach.
Some production costs will be fixed – for example, the cost of setting up production lines, tooling and so on – meaning that volume production is the key to turning a profit.
Read more at 9to5Mac.com