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The latest news on Audiobooks, eBooks and eReaders

Tired of Leaks, Apple Begins to Fine Suppliers

October 13, 2014 By Michael Kozlowski 1 Comment

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If you are a regular reader of tech blogs on the internet, you might have a passing knowledge of Apple product leaks. Whenever new phones or tablets are in production, regular leaks occur on internal components, screens or batteries. Apple is getting fed up with their suppliers providing leaks and has now implemented a policy of fining them, close to $50 million dollars each.

The fine may not affect companies like Samsung, but could be the kiss of death for smaller ones, that only make a component or two. GT Advanced Technologies, is the first company to feel the pain. They have just filed for Chapter 11 bankruptcy after deciding to close and sell-off its loss-making sapphire facilitates.

The problem with Apple fining suppliers for announcing they either have contracts with them or leaking component information is that these companies need the press. Apple is not their only contract, but the brand carries a lot of weight in the industry. GT was betting that news of Apple doing business with them, would attract other headset companies. This backfired and GT shares actually decreased.

Apple is well known in the tech world for a process of controlled leaks. They throw bones to journalists they like, and grant them exclusive interviews or scoops. Suppliers who leak out everything like the logic boar or RAM are circumventing the status quo and the new policy is to hurt their wallets.

Michael Kozlowski

Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CNET, Engadget, Huffington Post and Verge.

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Filed Under: Technology



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