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Woolworths is close to making an offer to buy consumer technology retailer JB Hi Fi. Executives at Investment Bank JP Morgan have also been consulted on a possible new bid and are now working on a tangible offer say Company insiders.
 
 
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  Has Apple Screwed Themselves Into Cheap Components?

By David Richards | Wednesday | 05/08/2009

Is Apple cutting costs a tad too far in an effort to make even bigger profits than the billions they currently make?

In the UK Apple has sent threatening letters to an 11 year old schoolgirl whose iPhone exploded and around the world hundreds of Macbook owners are complaining about design flaws with their notebooks with plastic cases cracking and hairline stress fractures appearing in the chassis of Apple Macbooks.

In the last quarter Apple reported a 36% margin on the sale of their products which is exceptionally high by industry standards. HP and Acer have margins of around 20%.


Click to enlarge
Macbook Herpes

Dealing with Apple is a difficult process. While the Company can deliver big production numbers they are exceptionally demanding when it comes to negotiating a price according to several manufacturers who have dealt with Apple in the past.

One Chinese vendor told ChannelNews earlier this year that several suppliers are struggling to supply Apple with quality components because Apple always wants "The best deal and this does not always translate into the best products" they said.

In the past there have been occasions, when vendors have dealt with Apple only to report record losses on the supply of components for products like the Apple iPod. A classic example is Samsung who made big losses two years ago supplying flash memory to Apple.

Five years ago Fujitsu lost millions supplying hard drives to Apple when hundreds of them overheated. These were replaced with drives from Toshiba.

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