Analysis Of Apple Supply Chain

3.2 – Apple Supply Chain

Should Be noted ,The biggest difference Apple has from other manufacturers is that it sources its materials and components from other manufacturers that operate throughout the globe. For example, its displays are mainly made in Japan by Japan Display and Sharp, and some are still made in South Korea by LG Display; whilst the Touch ID sensor found in its recent iPad and iPhone models are made in Taiwan by TSMC (Taiwan Semiconductor Manufacturing Company) and Xintec. In fact, Apple's list of suppliers stretches to more than 200 various suppliers located throughout the world.

This brings up a lot of interesting facts about Apple's supply chain, where it has to manage a huge number of suppliers and funnel their work into

Although this can increase a company’s bottom line, it can also require putting large numbers of domestic workers out of work, which can be hazardous to the company’s global brand management. In an age of increasing social responsibility, firing five thousand domestic workers is not exactly great for a brand’s image. Displacing so many people from their jobs is a very significant decision. Also, the workers who are losing their jobs are often the people who have helped grow the company into what it is. So, transporting so many jobs can often create resentment from, and hard times for, domestic workers. Between 2001 and 2011, around 2.7 million jobs were outsourced from the United States to China. A large percentage of those jobs were from the textile industry. While textile companies saved on their bottom lines by relocating operations to China, millions of workers lost their jobs in America. That is a heavy social cost to pay. There are both pros and cons to outsourcing manufacturing. Ultimately, it is up to the individual company to decide whether or not using a third party company to meet its manufacturing needs is the right decision. If a company can find a third party company which can provide cheaper labour, less regulation and fewer taxes, but also treats its workers fairly and provides them with a safe working environment and better quality of life, as many do, it can be an excellent option. The negative brand implications for putting domestic workers out of the job, and the possibility of forcing foreign workers to work in what are sometimes harsh conditions, however, may lead other companies to continue their domestic manufacturing practices. In an increasingly globalized world, opportunities for third party manufacturing will surely increase. The extent to which these opportunities will be taken advantage of is yet to be