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Apple Company

Apple was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. It launched the Apple 1 computer and became a pioneer in personal computing. Under Jobs' leadership, Apple experienced tremendous success but also near-bankruptcy before returning to profitability. Today, Apple designs its products in the US but outsources manufacturing largely to China, where it can access skilled labor and suppliers at lower costs, while benefiting from China's proximity to other Asian markets. However, this business model also exposes Apple to risks from supply chain disruptions and global economic conditions.

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Askar Sereke
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61 views8 pages

Apple Company

Apple was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. It launched the Apple 1 computer and became a pioneer in personal computing. Under Jobs' leadership, Apple experienced tremendous success but also near-bankruptcy before returning to profitability. Today, Apple designs its products in the US but outsources manufacturing largely to China, where it can access skilled labor and suppliers at lower costs, while benefiting from China's proximity to other Asian markets. However, this business model also exposes Apple to risks from supply chain disruptions and global economic conditions.

Uploaded by

Askar Sereke
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Company: Apple Inc

o Was founded by Steve Jobs,


Industry: Technology/Computer
Steve Wozniak and Ronald
Hardware & Software Wayne on April 1, 1976.
o By the summer of 1976 Ronald
CEO: Tim Cook Wayne had left the company but
the two Steve’s persevered
and launched the Apple 1
Computer. 
o This was the first of many trend
setting products to be developed
and released by Apple over it’s
now near 40 year history.
Steve Jobs returned to his roots in 1997 and
eventually became CEO, taking control of the company and
bringing Apple back from near bankruptcy to profitability
by 1998. Under the legendary leadership of the late Steve
Jobs, the Apple brand was successfully re-established, and
is arguably the most innovative company in the world today
with a loyal customer base devoted to the brand.

Apple company in 2020


“Apple purchases components and
materials from various
suppliers and ships them via air, to
save time and money, to the
assembling plants in China. From
there, products are shipped directly
to consumers who purchased Apple
products from their on-line store.” 
Supply Chain Planning at Apple Inc is the
classic example of the New Product
Development Process (NPD). It’s the
integration of R&D, Marketing and various
function under supply chain management.
From the above graphic, Apple Inc
accelerates the new product introduction by
acquiring licensing and 3rd party
businesses. The whole process looks very
similar to that of other industries. Interesting
point is that Apple Inc has to make pre-
payments to some suppliers to secure
strategic raw materials.
Supply Chain Map is the way to express large system
from points of origin to points of consumption in a
simple to understand manner. Information from the
annual report is also used to produce Apple Supply
Chain Map.
Apple purchases raw materials from various sources
then get them shipped to assembling plant in China.
From there, the assembler will ship products directly
to consumers for those who buy from Apple’s Online
Store.
For other distribution channels such as retail stores,
direct sales and other distributors, Apple will keep
products at Elk Grove, California and supply products
from there. At the end of a product’s life, the customer
can send products back to nearest Apple Stores or
dedicated recycling facilities.
• The global economy could affect the Company.
• Some re-sellers may also distribute products from competing manufacturers.
• Inventories can become obsolete or exceed anticipated demand.
• Some components are currently obtained from single or limited sources.
• Some custom components are not common to the rest of the industries.
• Ability to obtain components in sufficient quantities is important.
• Supply chain disruption such as natural and man-made disasters can be serious.
• The company depends on logistical services provided by outsourcing partners.
• The company also relies on its partners to adhere to the supplier code of conduct.
We want to show you how the sixth iPhone, one
of the most popular smartphones of its time, was
assembled. As you can see in the picture, the
parts are all from different countries. Only the
design and service was developed in America.
This means that Apple has a tendency to
outsource and is a low vertical company.
Offshoring

Apple also focuses on offshoring, the largest offshoring company being Foxconn. According to
the New York Times, Apple employs 43,000 people in the U.S., however, Foxconn, the largest
Apple offshoring company in China, has 230,000 employees to make iPhones and iPads. It is also
estimated that there are more than 500,000 people in China building Apple products.

Advantages
The rapidly expanding Asian market attracts Apple’s interests, and China’s location and position
make it easily access to other Asian countries.
 China has large amount of well-educated semi engineers and skilled workers, who can work at a
highly efficient level.
With the large amount of resources, China could build a faster and cheaper supply chain. Many
suppliers of Apple are from Asia.
Untaxed profit kept U.S. offshore in China.

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