Asger Risom
Apple loses ground as AI reshapes tech manufacturing.
For years, one company sat at the centre of the global technology supply chain, shaping prices, priorities and production. That balance is now shifting, as new forces redraw the map of who really calls the shots.
A changing centre
For more than a decade, Apple’s sheer scale allowed it to dominate suppliers across the tech industry. From chips and memory to packaging and substrates, its orders helped determine what got built and when.
That era is fading.
According to Business Insider, industry analysts say Apple is no longer the anchor customer it once was, as suppliers increasingly prioritise artificial intelligence companies and cloud giants.
Brad Gastwirth, global head of research at Circular Technology, told Business Insider that Apple still moves vast volumes, but no longer sits at the gravitational centre of the hardware world.
Where the power moved
Control of the supply chain matters because it delivers leverage. The biggest buyers secure better pricing, guaranteed capacity and earlier access to advanced technology.
That influence is now shifting toward AI-focused firms such as Nvidia and major cloud providers including Amazon, Microsoft and Google. These companies are ordering components in volumes that rival or exceed smartphone demand, and they are willing to pay more.
The change is most visible at Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker.
TSMC’s signal
TSMC built much of its reputation producing cutting-edge chips for iPhones, which helped Apple stay ahead of rivals. But smartphones are no longer its main business.
Business Insider reported that high-performance computing, dominated by AI chips, now accounts for about 58% of TSMC’s revenue, far surpassing smartphone processors.
On a recent earnings call, TSMC chief executive C.C. Wei said AI customers were delivering clear financial returns and had the resources to keep spending.
Pressure on components
The shift is rippling through other parts of the supply chain. Memory manufacturers are diverting capacity away from phones and PCs to supply AI data centres, pushing up prices.
Gastwirth said Apple’s long-standing leverage weakens when suppliers earn higher margins from AI customers. Nvidia has already locked in long-term memory supply, leaving smartphone makers with less negotiating power.
Unexpected bottlenecks
Shortages are also emerging in obscure areas. Business Insider cited a Nikkei report describing a lack of high-end glass cloth used in chip substrates, prompting suppliers to prioritise AI firms that pre-pay and sign multi-year deals.
Apple is now competing for the same materials and has reportedly sent engineers to help qualify alternatives.
A new reality
Manufacturers are adjusting too. Foxconn, once defined by iPhone assembly, now earns more from AI servers than consumer electronics.
Apple remains one of the world’s biggest buyers. But in a supply chain increasingly shaped by AI, pricing and capacity decisions are being set elsewhere.
Sources: Business Insider, Nikkei
