Case Study 1 In its early days, Apple usually didnt look beyond its own backyard to manufacture its devices. 2. Competitive demands and the pinpoint timing of major product launches mean that Apple … Apple’s Supply Chain … Advantages of outsourcing. 3. Who better than the tech luminary to explain why the company he co-founded favored China over domestic manufacturing? The choice was rooted in the fact that it would save Apple a lot of money. A few years after Apple started to make the Macintosh computer back in 1983, Steve Jobs bragged that it was a machine that was made in America. The ultimate losers are the people in the United States because they lose jobs because Apple has outsourced the available jobs to China. What are the potential costs and risks to Apple? Case Study 1 In its early days, Apple usually didn’t look beyond its own backyard to manufacture its devices. Knowing the benefits of outsourcing will help you decide if this is something that could work for your business. America does not produce iPhones here because we, the average middle-class American family, demand that Apple outsource its production to China. A few years after Apple started to make the Macintosh computer back in 1983, Steve Jobs bragged that it was ‘a machine that was made in America’. Technology Outsourcing Don'ts Learned From Apple The company's latest supplier responsibility report is out. Apple is more secretive about its supply chain in China than almost all of its rivals, according to a new report by anti-pollution activists who accuse the company's products of … Dive Brief: China's "iPhone City" in Zhengzhou — which hosts Apple's manufacturing partner, Foxconn Technology Group, and can produce 500,000 iPhones a day — is emblematic of the local incentive system behind many companies' offshoring decisions, according to a recent New York Times report. … 38614, posted 07 May 2012 12:36 UTC . Advantages Of Outsourcing. The top destination for Apple’s outsourcing is India: Where big companies (Apple, Google & Facebook) outsource development (Image source) In 2012, the news on Apple's decision to collaborate with software developers in India was shared online, yet not so many details were revealed. The 10 largest shareholders of Apple … Outsourcing and corporate social responsibility : Apple in China Urakami, Kiyoshi Urakami Asia Management Research 7 May 2012 Online at https://mpra.ub.uni-muenchen.de/38614/ MPRA Paper No. The advantages to Apple outsourcing its production to factories in China include superior responsiveness, superior scale, flexibility, diligence, and access to industrial skills. Apple produces most of its products such as iPods, iPod minis and iPhone in China, thus ensuring a very low production cost and an increased US market attractiveness (Scribd, 2011).The single most important reason for outsourcing iPod and iPhone production to China is that the manufacturing costs are significantly lower than what it would cost to assemble in the United States or Europe. direct market access to Asian consumers. Bringing Innovation to Market Apple CEO Tim Cook: This Is the No. On January 13, 2020January 13, 2020 By admin_admin. A few years after Apple started to make the Macintosh computer back in 1983, Steve Jobs bragged that it … The pragmatic side of Steve Jobs and Apple with outsourcing. That is a staggering amount of time lost. Case Study 1 In its early days, Apple usually didnt look beyond its own backyard to manufacture its devices. Apple, Adidas, Hewlett Packard and First Solar are among the many companies that have chosen to use third-party manufacturing companies to help fulfill the demand for their products. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? In addition to Apple, who else benefits from Apple's decision to outsource assembly to China? The benefits of outsourcing can be substantial - from cost savings and efficiency gains to greater competitive advantage. The New York Times articles exposed the inhumane working conditions of the Foxconn employees, conditions that should cause us to question the … Finances forced Apple to change course. What are the potential costs and risks to Apple? You should consider carefully the pros and cons of outsourcing before deciding to contract out any activities or business operations. In addition to Apple, who else benefits from Apple's decision to outsource assembly to China? It offers unrivalled capacity for manufacturing a wide range of products at the lowest prices. They get the benefits of low production costs and, in many cases. The reason Apple makes iPhones and iPads in China, the article shows, is not just about money. Although Apple declares that the decision wasn’t about the inexpensive labor, all of it boils down to the cash. As a rule of thumb, we typically expect manufacturing in China to be about 50% of the cost of manufacturing in the US or Western Europe. There are numerous benefits for Apple in outsourcing their assembly line to China. 2. Apple Inc. (NASDAQ: AAPL) announced Friday morning that it will invest more than 3.5 billion yuan (about $506 million) to establish research and development centers in Shanghai and Suzhou, China. On the other hand, loss of control over the outsourced function is often a potential business risk. Outsourcing manufacturing to China can unlock value for your company and help bring your new products to market quickly and efficiently. In the case of Apple, outsourcing manufacturing is not about keeping costs to customers down - they are still paying huge prices for the latest handset or tablet computer. Apple’s China outsourcing reduces production time from 9 months to 15 days. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? And it's something every entrepreneur wanting to outsource should read. In China, factories are close to each other when any assembly plant needs supply, they just need to go next door for supplies. However, as this industry has grown and matured, so have the pitfalls that come with it. Urakami Asia Management Research － Research Note 1 Outsourcing and corporate social responsibility － Apple in China － May 7, 2012 Kiyoshi Urakami Key … 1. Engineers in China were much easier to find. The decision wasn’t driven by cheap labor costs in Asia. 3. Although few know exactly how much the Chinese government bestowed upon Foxconn to … Apple’s leading reason to outsourcing its products from China was because of its subcontractors. The benefits to Apple of outsourcing the assembly of the iPhone to foreign countries include reduction in the cost to Apple as Chinese labor is available at a lower cost as compared to American labor as China has the largest population in the world. Home / What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? The Los Angeles Times opinions staff felt the pangs of conviction when The New York Times released a series of articles exposing the harsh labor standards of Apple employees at Foxconn in Shenzhen, China where Apple products are made. China’s outsourcing market grew by 30% in 2014, and a lot of companies from other countries have moved their own headquarters to China to establish a business. Apple Inc. is a very powerful American company that has been outsourcing its manufacturing in a very successful manner and for a very long time as, majority of its manufacturing takes place in China. Who are the potential losers here? Case Study 1 In its early days, Apple usually didn’t look beyond its own backyard to manufacture its devices. In China, this process takes 15 days, in the United States this same hiring process would take nine months. 1 Reason We Make iPhones in China (It's Not What You Think) China is much more than a … “I’ll make it in China” is the default assumption for most consumer and light-industrial product companies. There are several important factors to be considered in such a major decision…. Why Apple outsources to China (image source) Another major reason why Apple outsources is that the US does not provide the desired talent pool. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? 0. In fact, China is no longer a cheap outsourcing hub but is pretty much unbeatable in key stakes such as manufacturing speed, flexibility, and sheer … Here are three reasons to give this a try: 1. On January 31, 2019January 31, 2019 By admin_admin. 0. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? The factory employers and employees in China benefit from Apple’s decision to outsource as more number of jobs are created in China. “A great amount of Apple’s supply chain success can be attributed to them continuing to design their products in California, while leveraging the lower cost of outsourcing manufacturing to China.” – Original quote from Jonathan Hamilton (IT Consultant) – Source Econlife. We have all become accustomed to the cost effectiveness of product outsourcing to China. As Mac sales plummeted and inventories began to bulge in the mid-1990s, Apple had to embrace outsourcing, … By Erik Sherman July 29, 2013 / 12:13 PM / MoneyWatch (MoneyWatch) It has been more than three years since Apple… Home / What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? Shifting manufacturing operations to other countries can be a massive undertaking. This helps in the reduction of the average cost of production and thus help in realizing the economies of scale in production. 2. What are the potential costs and risks to Apple? The cost of shipping from a remote city in China (where most factories are) versus the cost of shipping from somewhere in the U.S. will be drastically different. Apple, for instance, relies on hundreds of thousands of Chinese workers to build its products. The time response for production from China attracted Apple the most. An example of the superior responsiveness, in assembly, to Apple’s needs is the impres sive speed and flexibility of Chinese factories to accommodate a change request. What are the potential costs and risks to Apple? Apple has China labor problems -- again. Mr. Hillsberg, courtesy of an info-graphic shows that the time it takes to hire 8,700 engineers to oversee 200,000 factory workers. Who are the potential losers here? 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