Here’s How Apple Rumors Are Born

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Apple Tim Cook iPhone 5

DigiTimes, a Taiwan-based media outlet and market research company, is well-known to many industry watchers as a frequent source of Apple (NASDAQ:AAPL) supply chain rumors. Apple fans who are hungry for clues about the notoriously secretive Cupertino-based company’s upcoming products can usually count on one of DigiTimes’ unnamed supply chain sources to provide the latest Apple product rumor. On the other hand, the news site has a spotty record when it comes to the accuracy of its Apple rumors.

However, in a recent interview with the media division of the company, DigiTimes Research director Joanne Chien gave an insider’s glimpse of how many Apple rumors originate and why some of them turn out to be untrue. The Chien interview was first spotted by Brooke Crothers at CNET. In the interview with DigiTimes, Chien discussed the “seismic shift that is underway in the mobile device supply chain” and revealed how even a secretive company like Apple is open to scrutiny during the process of bringing a new product to market.

According to Chien, Apple and Samsung (SSNLF.PK) each have a “vertical integration strategy” that seeks to tightly control the design, component choice, and manufacturing process. However, both companies “still rely heavily on the Greater China supply chain.” She noted that DigiTimes Research’s “supply-side approach” to the market allows the company to “monitor shipments made to the vendor from the supply chain, rather than from the vendor to the end-user, which other research firms do.” This unique approach allows DigiTimes Research to get an early glimpse of products that companies like Apple or Samsung are preparing to launch.

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