Apple changes storage strategy: OLED displays held longer
To hedge against rising raw material prices, Apple is said to have extended its storage of OLED displays. Analysts expect price increases.
(Image: Sebastian Trepesch / heise medien)
One of Apple’s success recipes in cost efficiency is known to be its inventory management in production. Those who store little also have to throw away little or sell at a discount if demand collapses. In view of the current storage crisis with increased costs, the iPhone manufacturer is said to have deviated a little from this, according to a report. The changed strategy could also be a sign that price increases are no longer just affecting storage.
The South Korean Electronic Times reports, citing sources in the supply chain, that Apple is now holding its OLED displays for six weeks instead of the previous four. This is particularly unusual at the current time, as the current quarter is considered the “off-season”. A few weeks before the introduction of new iPhones, the biggest rush for the current iPhone generation is long over, and many buyers are waiting to see if they would rather buy the next generation.
Strategy against high prices
With the larger inventory, Apple apparently wants to cushion expected price increases from its suppliers, as raw material prices are currently rising. Some observers even fear that further price increases are imminent, as storage is by no means the only area affected by rising prices. Moreover, the increased demand for iPhones could also play a role in the calculations. Apple recently reported record numbers again. The price increases for iPhones expected in the fall are causing many to buy again, which increases the demand for components.
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Samsung Display and LG Display are considered Apple’s main suppliers for OLED displays. Apple also sources smaller quantities from BOE in China. They can all look forward to larger orders at the moment. Observers expect Apple to maintain longer storage for quite some time to have a buffer against high daily prices. The otherwise used option of enforcing price reductions from suppliers is currently hardly possible, the report says.
Apple has already increased its prices for large parts of its product range, including Macs and iPads, in recent weeks. The iPhone has been spared so far, but it is considered a foregone conclusion among analysts that the question is not whether Apple will also increase these prices, but only by how much they will be raised. As early as February, it became apparent that the RAM inflation could change Apple’s iPhone line-up.
(mki)
