Not-so-fast Suppliers
- David Rogers
- 2025-02-02
Not like “way” wrong, but very technically/machinist nerdy, sort of wrong.
A pivotal moment in Apple’s supply chain management occurred during the iPhone 6 “bendgate” crisis, when the company needed to switch from 6061 to 7075 aluminum. When their contract manufacturers Catcher and Foxconn claimed the new material would double production time and require significant price increases, Apple took the unusual step of independently validating these claims. By testing identical tooling and processes on the same type of CNC machines used in production, Apple discovered their suppliers were attempting to inflate costs unnecessarily. This led Apple to establish a dedicated production validation lab that mirrors their Asian manufacturers’ equipment – distinct from their prototype shops’ high-end machines – enabling them to accurately benchmark manufacturing capabilities, validate processes, and make informed design and procurement decisions. The key lesson is that maintaining in-house production expertise and testing capabilities can be crucial for OEMs to prevent supplier opportunism and ensure fair pricing in contract manufacturing relationships.