Apple absorbing higher costs created by Japan earthquake

Posted on Saturday, Apr 02 2011 @ 09:01 CEST by Thomas De Maesschalck
DigiTimes reports Apple is paying more for its components in exchange for smooth shipments:
Although Japan's power brownout policy is seriously affecting the operations of Japan-based upstream component makers, causing related upstream components to see price rises, since Apple has agreed to absorb all the additional costs in exchange for smooth shipments, Apple's upstream component suppliers, which purchase components from Japan, are expected to see their profitability undamaged in the short term, according to sources from upstream component makers.

However, for other tablet PC vendors, purchasing pressure will increase and if they are unable to absorb the extra costs, which will only give Apple more advantages in the market.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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