Stable iPhone 6, 6 Plus Supplies for Christmas 2014 Secured as Apple Improves Deals with Foxconn
Apple is ramping up efforts to ensure that sufficient supplies of both the iPhone 6 and iPhone 6 Plus are available come Christmas 2014 as the tech giant reportedly improved on its ongoing business deals with Foxconn.
Foxconn, which operates from Taiwan and the mainland China, holds the biggest slice of the contract to assemble and deliver Apples' 2014 flagship smartphones.
Supply woes
Earlier this week, reports came out that buying the two iPhone 6 models in the next few months could prove difficult for most consumers around the world Apple CEO Tim Cook hinted current supply for the devices are "far outstripping the demand."
Cook added that while mass production of the iPhone 6 is in ramped up mode, a balance on supply and demand may not be realized until early 2014.
However, the Apple chief also gave assurance that best efforts are now underway to deliver the iPhone 6 in most market destinations by the holiday season this year with sufficient stocks to go by.
Foxconn gets pay increase
One solid way that could accelerate the manufacture of both the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus is increasing the pay given to the devices' maker. According to DigiTimes, Cook is doing just that and Foxconn is getting a higher rate per complete unit that will be packed and delivered.
From $20 per unit, the pay will jump to a high of $25 though the same DigiTimes report is noting that the agreement is short-term with the obvious target of boosting yield rates from October to December 2014.
With the upgraded deal, Foxconn is likely to further beef up its workforce in order to meet the heavy demand for the iPhone 6. Currently, the Apple contractor employs around 200,000 Chinese workers dedicated in putting together the handset.
Expanded Foxconn contract?
Another way to encourage better iPhone 6 output from Foxconn and therefore stable supply of the device is the promise of more lucrative Apple contracts for the Taiwan-based manufacturer.
That could come in the form of display supply contracts that would position Foxconn in the same league with LG, Samsung and Sharp as top-tier business partners of Apple, if a new report from The Wall Street Journal will prove accurate.
"Foxconn hopes to capture the growing demand for high-resolution, energy-efficient displays and supply Apple and other smartphone makers in the next few years," The WSJ report quoted its unnamed source as saying.
It is understood, however, that Foxconn's posturing to provide iPhone and iPad screens in the future remains in the early stage and an agreement with Apple on the matter is yet to be discussed nor finalised.
What's clear though is Foxconn's initial preparations appear to be underway in order for the company to capitalize further on future release dates planned by Apple for next-generation iPhones and iPads.