The Big A? The Fruit Company? Why the Maker of iPhones Must Not Be Named.

In Asia, it’s surreptitiously known as “the fruit company” or generally “Fuji,” referring to the selection of the particular fruit in query that’s cultivated in Japan. Other descriptors embody “the three-trillion-dollar company”—which barely overstates its market worth—“the honored North American customer” and easily “the big A.”

In a January securities submitting, O-Film Group, a Chinese maker of smartphone digital camera modules mentioned it estimated a loss of as much as $426 million in 2021. One purpose was misplaced enterprise with “a certain customer beyond these borders.”

Which buyer? An O-Film spokesperson didn’t reply to the query.

In distinction to Lord Voldemort of the Harry Potter collection, the Client Who Must Not Be Named doesn’t solid lethal spells or converse with serpents. Its powers, nonetheless, are fearsome. It can award—or take away—contracts for digital elements and providers value a whole lot of thousands and thousands of {dollars}.

That is why suppliers’ public displays and even personal conversations rarely embody the title of the firm they’re discussing, for worry of offending somebody or unintentionally revealing aggressive info.

The reluctance to spell out the remaining 4 letters past “A” is extra than simply customized. A 2014 court docket submitting associated to a former provider’s chapter gave particulars about its confidentiality settlement with the buyer. The provider, GT Advanced Technologies, promised to pay $50 million for every breach of secrecy, in accordance with the submitting.

The settlement outlined breaches to incorporate not simply the typical commerce secrets and techniques but in addition the very existence of the relationship.

In 2020, it grew to become clear after just a few pandemic months {that a} delay was doubtless in the typical September introduction of smartphones carrying a stylized image of a partly eaten fruit on the again. It was the discuss of the provider world, even when nobody may specify what they have been speaking about.

At an earnings name in June 2020 by chip maker

Broadcom Inc.,

an analyst talked about, with out naming names, that “growth in Q3 from a seasonal perspective” may be missing. He requested for “some more color around how we should think about the wireless expected recovery into Q4.”

Broadcom Chief Executive

Hock E. Tan

instantly knew what was up.

He mentioned he understood what the analyst was implying: Broadcom was certainly designing chips for “those big flagship phones” made by “our large North American OEM phone maker.” He confirmed the delay in the OEM’s merchandise. OEM means unique gear producer, an trade time period for client brand-name firms.

Samsung Electronics Co.

’s Galaxy smartphones are the main rival to the fruit firm’s flagship product, however the South Korean firm additionally provides screens and different elements for that product. Samsung staff have generally referred to their frenemy with the nickname LO, quick for “Lovely Opponent,” in accordance with individuals aware of the matter.

For their half, LO’s staff are mentioned to check with Samsung as “Samsung.”

Taiwan-based

Foxconn Technology Group

has had a relationship with the fruit firm for many years and is by far the largest assembler of its smartphones, in accordance with analysts. Foxconn’s most up-to-date annual report, weighing in at 860 pages, names the buyer a complete of as soon as. The “big A” comes first on an inventory of Foxconn’s main prospects, solely as a result of the checklist is in alphabetical order.

Taiwan Semiconductor Manufacturing Co.

, which makes processing and different chips for the smartphone, mentions its ally twice in its annual report—not as a buyer, however as an issuer of bonds held by TSMC.

Asked for remark, a TSMC spokeswoman prevented naming particular prospects however mentioned, “One of the key factors to build customer trust is through protection of customers’ confidential information.”

The giant North American smartphone maker isn’t alone amongst international manufacturers in being sensitive about its provider relationships. In a technique, it’s extra clear than most: It places out an annual checklist naming its high 200 suppliers.

O-Film, the Chinese smartphone digital camera module maker, mentioned in its submitting that along with shedding enterprise with the “customer beyond these borders,” its income was hit by issues at a sure “H.”

The provider described “H” as a Chinese maker of smartphones that had its entry to superior chips reduce off. It didn’t take a detective to infer that it was speaking about Huawei Technologies Co., which was hit by U.S. sanctions in 2020.

A customer sporting a nametag that mentioned “O-Film VIP guest Tim”—and not using a final title or firm title—toured an O-Film plant in China in 2017 and praised the provider’s “remarkable, precision work” on selfie cameras. On China’s

Twitter

-like social media platform Weibo, he posted a cheerful message, “Say eggplant!”—the Chinese model of “Say cheese.”

When the U.S. authorities put O-Film on a blacklist, the relationship ended. O-Film disclosed the information, obliquely, in the securities submitting.

One entity that’s accustomed to strict censorship wasn’t afraid to utter the title in public. China’s state broadcaster, CCTV, spent a few minute of a business-news report describing O-Film’s issues and named the buyer that had taken a chew out of O-Film’s income six instances. CCTV referred to as on producers in the “fruit chain,” as it’s identified in Chinese, to keep away from dependence on a single buyer.

A spokeswoman for

Apple Inc.

declined to remark.

Write to Yang Jie at [email protected]