Apple Inc Diversifying Supply Chain Outside China
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It is well known that Apple Inc is one of the most popular smartphone brands worldwide. As a smartphone-giant, Apple has been investing heavily on its supply chain operations. In 2018, Apple Inc reported that its iPhone production volume was 371 million units. In 2020, the company reported 46.6 billion USD revenue and 52.3 billion USD of adjusted net income. The company reported 20% increase in operating profit in the second quarter of 2021
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Today, Apple Inc, the world’s top most corporation, is expanding its manufacturing outside China. As of 2017, the company has approximately 250 suppliers from around the world. Suppliers across the world supply products for various aspects of Apple’s products such as hardware, software, and peripheral. Although the majority of these suppliers are located in China, a growing trend is the increasing number of suppliers outside of China. Why Diversify Supply Chain Outside China? The main
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I’ve been covering Apple Inc for 25 years since its inception. I’ve always been fascinated by the company’s approach to supplier diversification — which has allowed it to manufacture products around the world. This trend started in the mid-2000s, when Apple decided to expand its production outside China. As early as 2008, the company started sourcing components from Taiwan, South Korea, Malaysia, Indonesia and Thailand. The move was driven by a number of factors, including
Problem Statement of the Case Study
Apple Inc, the global leader in consumer electronics and a world’s leading technology company, had diversified its supply chain beyond China, especially for its flagship iPhone model, the iPhone X. The company aimed to keep its supply chain secure and flexible while maintaining quality and productivity. The objective was achieved by expanding the global supply chain beyond China, including countries such as India, Bangladesh, Vietnam, Malaysia, and Indonesia. Section: Case Study Description According to the Apple Inc. useful source Supply Chain Diversification Strategy 2
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In recent years, Apple Inc. Diversified Supply Chain Outside China — it was one of Apple’s major concerns, especially when the company was developing products such as iPad and iPhone. In 2001, the company bought Foxconn Technology Co. Ltd., a Taiwanese contract manufacturer for its iPod device. At the time, Foxconn Technology was a humble 400-employee company producing basic goods and assembling the iPod nano. But over the next 13 years, Apple continued to make substantial invest