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With demand for smartphones weakening and Apple's iPhone sales continuing to rise, some smartphone vendors such as HTC, Xiaomi Technology and Asustek Computer have been demanding that their upstream suppliers, including PCB makers, cut component prices to help reduce their pressure, according to a Digitimes report.
Xiaomi, for instance, is reportedly requiring component suppliers to reduce their quotes quarter by quarter as shipments have been lower than expected.
To stave off competition, however, a number of Taiwan-based PCB makers with relatively smaller production capacities are planning to stop taking these orders with meager profits and instead ramp up their shipment ratios for other applications.
Xiaomi and other smartphone vendors thus have been shifting part of their PCB orders to China-based suppliers, which can offer related products at prices much lower than those quoted by Taiwanese makers, Digitimes said.