Apple producing more iPhone 5 parts in Taiwan

Apple seems to have plans afoot to move a number of their iPhone 5 parts from Japan to Taiwan, at least according to a report on Electronista. It seems that Taiwanese companies Foxconn, Foxconn Electronics, Foxlink, Gold Circuit Electronics and Epistar will now all be supplying parts for the iPhone 5.

The article has taken some of its information from an Economic Daily News piece, in which the costs of the “small parts” were believed to be set at £107.4 million, quite a large amount for such small pieces. DigiTimes also mentioned just last week that Foxconn would be the new iPhone 5 earphone supplier, replacing Japanese firm Foster.

The reasoning behind this possible move seems to be based on the fact that the Japanese yen is making parts more expensive for the company to produce, while moving them over to Taiwan will reduce their costs and lump all of their part making processes into one area.

The article goes on to suggest that another reason could be to reduce the costs it will take Apple to produce the new iPhone 5, due out at some point this year, although these cost savings are highly unlikely to filter down to consumers. 

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21 Comments

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Quote: "The article goes on to suggest that another reason could be to reduce the costs it will take Apple to produce the new iPhone 5, due out at some point this year, although these cost savings are highly unlikely to filter down to consumers."

Perhaps, but this is the standard American business model. Reduce costs, increase quarterly earnings, make share holders happy. This is especially true in a growing market sector such as the smart phone industry.

bluegate3047 said,

Wait... I'm confused... what's your definition of "top of the line"?

I'm sure he means high-quality products from taiwan. Indeed Taiwanese have moved on from producing cheap toys during 60s and 70s into high-tech oriented economy. TSMC (Taiwan Semiconductor Manufacturing Company) is world's largest semiconductor foundry.

Taiwan's HTC is my favorite smartphone brand right next to apple.

I was in taipei last year...their subway transit makes new york's subway look like a 3rd world system.

Island Dog said,
Fantastic! Glad to see more jobs coming to Ameri........oh....

Don't blame Apple, it's not like they have billions of dollars just lying aroun... oh.

"It's stuck, yes?"
"Back off! You don't know the components!"
"Components. American components, Russian Components, ALL MADE IN TAIWAN!"

Nexus69 said,
"It's stuck, yes?"
"Back off! You don't know the components!"
"Components. American components, Russian Components, ALL MADE IN TAIWAN!"

Probably one of my favorite characters in a movie lol....dude cracks me up in that scene.

KarbonKopy said,

Probably one of my favorite characters in a movie lol....dude cracks me up in that scene.

That is also my favorite scene in the movie, I guess she was holding the wrench wrong

Alansonit said,
Iphone 5, Made In Taiwan.

more like Designed in California, Made in Taiwan, Assembled in China, May contain some parts from Japan all written in laser etech across the shiny back

neufuse said,

more like Designed in California, Made in Taiwan, Assembled in China, May contain some parts from Japan all written in laser etech across the shiny back


May contain traces of nuts