It is understood that this time’s increase in industrial costs is mainly due to the excessive size of the iPhone 6 stocks. The main assembly plants are being maxed out, which is having the effect of crowding out their manufacturing capacities. Because their production capacities are being strained, electronics OEM industries are only able to choose high priced orders. If clients from other brands also want these production capacities, they will have to pay markup prices of between 5% and 10%.

Analysts point out that profits for electronics OEMs are usually not high, and in order to retain clients in the past, OEM manufacturers would not talk about raising prices. Sometimes they were even willing to lower prices on reservation orders. Now Foxconn, Pegatron and Wistron may be willing to risk losing other clients and raise their costs, as it has been revealed that profits from iPhone 6 orders are considerably lucrative.

In addition, the level of difficulty for assembling high-level smartphones is becoming higher and higher, while the wages in Mainland China are also continually rising at a rate of 10% each year. These two situations are now enabling OEM manufacturers to have the opportunity to raise their prices.