Apple is demanding that suppliers of components for its iPad tablets reduce their prices by 10 percent, according to a report in the Chinese-language Economic Daily News.
The news report, spotted and translated by DigiTimes on Tuesday, said Apple was pressuring suppliers to provide quote cuts for the second quarter of 2011.
Apple reportedly is making the demand because it expects second-quarter its tablet shipments to grow 70 percent quarter-over-quarter in its current fiscal period, and the iPad-maker wants a discount on the higher-volume orders it expects to make.
Upstream suppliers of PCBs, optical components, battery modules, touch panels, and other parts used in Apple's market-leading iPad 2 tablets have faced the quote cut demand from the computer and device maker, the report said.
The Economic Daily News also reported that components makers expect Apple to demand further price cuts in its third quarter, as iPad shipments are expected to continue to increase.
Going by iFixit's March 11 teardown of an Apple iPad 2, the tablet contains components from Broadcom, Samsung, Toshiba, Dialog Semi, Texas Instruments, Cirrus, STMicroelectronics, and others.
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