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Apple to Add Two Chinese Suppliers to Provide it With Face ID Components for the Upcoming iPhone Lineup

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Feb 8, 2018
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Lots of analysts argued and contemplated that Apple was forced to delay the iPhone X launch due to a lack of Face ID components supply. The California-based giant is going to be putting a stop to all this. Previously, it was reported that LG Innotek was going to supply the iPhone maker with 3D sensing solutions for Face ID purposes, but it appears that to put an end to the demand and supply disparity, the company is looking to hire two more suppliers.

Apple Might Not Delay 2018 iPhone Launch Date as More Suppliers Will Mean an End to Face ID Supply Woes

According to the latest report, Apple is going to be adding two Chinese suppliers this year for a stable supply of 3D sensing modules for its Face ID recognition system. It can be assumed that Face ID is going to be present in all devices that are going to be launched this year, and this will also include the 6.1-inch LCD-touting model.

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Adding more suppliers for a particular component is a business strategy that has worked very well in Apple’s favor. It allows the tech giant to command a better pricing per component, which in the end will allow it to generate a higher profit margin per device sold.

Sources close to the matter have said that LG Innotek will remain as the main vendor, while the secondary Chinese suppliers will produce the remainder of this supply. Apparently Sharp, the company that provided parts for the iPhone X reportedly failed to renew the deal so Apple was forced to find alternatives.

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It is quite strange for Apple to have Chinese suppliers for key parts as sources say their yield rate could affect LG Innotek’s supply volume in the future.

Are you excited to see Face ID on potentially all three iPhones that are getting released this year? Tell us down in the comments.

Source: The Investor

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