Apple Agrees to Absorb Increase in Japanese Production Costs?

Apple has agreed to absorb the increase in production costs faced by Japanese component suppliers, according to DigiTimes.

Since Apple has agreed to absorb all the additional costs in exchange for smooth shipments, Apple's upstream component suppliers, which purchase components from Japan, are expected to see their profitability undamaged in the short term


Much of these production cost increases stem from Japan's power brownout policy that was implemented on March 14th. Apple's Japan-based upstream suppliers are estimated to have enough inventory to last until May; but may not be able to sustain to June.