Apple.Inc Pros and Cons

apple Inc. is the best in the earthly concern at innovative harvest-tide learning. Because the company develops hardw are, software, and associated digital services quite an than just focusing on one dimension, it washbasin provide an remaining user experience. This al beginnings apple to capture high margins from its products and services. But by my definition, product development is not allow chain management procurement, manufacturing, and logistics are. That said, orchard apple tree Inc. has a fascinating cede chain that is very different from traditional add on chains.This generate chain comes with pre-built advantages and disadvantages. On the advantage side, demand management is easier. Apple doesnt have to get the demand forecast for a brisk product right. As long as it underestimates demand for a gamey untried product, Apple will have loyal customers clamoring for the new devices and willing to wait. In fact, the projected backlog leads customers to line up f or hours forward stores open to buy a new product. This helps to create marketing buzz. Because Apple Inc. has become so large, it has procurement advantages smaller rivals cant match.Financial analysts are beginning to focus on Apples emerge chain. Samsung helpless $10 billion in market value when Apple lay a huge order for flash memory with Elpida, securing more than half(a) of that companys supply. Apple reportedly has price advantages in securing signalize components, manufacturing capacity, capital equipment, and airfreight capacity. Like other companies that have huge procurement clout, when Apple asks a supplier for a price quote, it demands a detailed be of how the manufacturer arrived at the quote, including estimates for labor and material costs and projected profit.Manufacturers can get hit with penalties for quality issues and warranty claims. Apple is becoming so big that even though it has a number of customized components that it has to pay trim for, the compa nys cost structure is starting to resemble that of both(prenominal) of its rivals that only source common components. But other parts of the supply chain become more difficult for a company that differentiates itself establish on product excellence. Apple Inc. works to lock up the supply of key components, particularly custom components, with exclusivity agreements.This serves to protect the uniqueness of its products. In slightly cases, Apple invests in capital equipment to make these special components (the company lends the take equipment to its manufacturing partner). At times this production machinery becomes Apple exclusive either because of exclusivity agreements or because Apple is so large that a backlog for the equipment becomes horrifically long. Managing new product launches is also more important for a fashion manufacturer. The process from externalise to production launch typically takes 10 months.Read more close Pros and Cons Of ReligionThis includes sourcing, te sting, government approvals (like FCC approval for an iPhone), and factory dry runs. For weeks prior to the launch, factories work extra time to build hundreds of thousands of devices. Then they work more overtime to clear the backlogs. tally to Apple Inc. s supplier responsibility progress report, the companys standard labor policy is for workers to work a maximum of 60 hours per week and to get at least one day transfer per week. And yet, at 93 of its suppliers, more than 50 percent of their workers exceeded these rather low limits.In fact, working conditions at Foxconn, Apples partner for final fictionalisation and some core components, have been bad enough that Apple has gotten a bit of a black eye from press reports of accidents, suicides, and labor strife. small-arm the existing customer base has largely ignored these labor traffic problems, the demographics of the people that buy Apple products indicate a concern for genial responsibility. Further, the Chinese market i s becoming very important to Apple, and closer Chinese governmental scrutiny could affect shipments. What is different about Apples launch planning is the extreme secrecy attached to it.Apple places electronic monitors in some boxes of components to track them from Apples headquarters in Cupertino. The finis is to discourage leaks and ensure customer delight and surprise when the products hit the market. whizz article claims that Apple has shipped devices in plain boxes, even tomato boxes, to obviate detection. But Apple Inc. , like many companies in the electronics industry, has a supply chain with a high-risk profile. Many of its key components come from northern Taiwan, the company sole sources several customized components, and it relies on massive factories located in Shenzhen, China for final assembly.Any sort of man-made or natural hazard at any of these sites could potentially grind Apples supply chain to a halt. In conclusion, Apple Inc. s new CEO, Tim Cook, is a suppl y chain guy with a strong reputation. He is working to improve the companys reputation for social responsibility. But if I were Apple, Id rather have another product development guru like Steve Jobs. To drive cut throughd growth and margins, the company needs to continue to excel at product development, but only needs to be competent in supply chain management.