These changes encouraged Apple to produce several components in-house. Recently, it told its graphics chip supplier, Imagination Technologies, that it would cut its order in half in two years as it looks to manufacture graphics cards in-house. This made Imagination Technologies stock fall 70.0% in just one day. More suppliers are likely to suffer a similar fate in the coming years.

Apple started in-house production of hardware components with processors and then gradually brought graphics, Bluetooth, and other chips in-house. There are rumors that Apple is looking to bring power-management chips and modem production in-house as well, putting its relations with suppliers Dialog Semiconductor and Qualcomm (QCOM) at risk.

In-house designing helps Apple maintain its top position among suppliers even after semiconductor acquisitions. It also gives Apple full control of its hardware.