Transcript Apple’s Chinese.ppt

Apple’s Chinese
Supply Chain
By: Bruce Einhorn
Presented by: Erik Fedler, Johan Ericson, Jose Phillips
The IPod and Its Design
• The new design of the IPod Packaging announces loudly
that the products is designed in California.
• Most customers don’t care where it is made which is just
what Apple wants.
• Taiwanese electronics companies assemble millions of
IPod in chinese factories every year
The Relience on Apple
• The IPod manufacturing in China is big
business.
• Inventec Appliences made $3.6 billion in
sales for 2005, 60% of which was from
Apple productions.
• Larger more diversified businesses rely
less on Apple
Apple and It’s Standards
• Apple has near obsessive standards
regarding their secrecy and quality.
• Despite the strict standards the companies
still like working for Apple.
• The IPod and its profit margins provide
some welcome relief for many
manufacturers shrinking profit margins.
Scrutiny of the Factories
• Apple tries to maintain a low profile of it’s
Taiwanese suppliers.
• With the violations uncovered at some of it’s
suppliers factories many thought that it would
mean more leverage for the suppliers.
”I don’t think the (Hon Hai controversy) can change
the rules to much….Apple is the Big Shot.”
-Wu of Osuppli
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