The Iphone Supply Chain

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Contents
1.Introduction……………………………………….. 3

2.Supply Chain Map……………………………….. 4

3.The Supply Chain………………………………… 5

3.1 Figure 1…………………………………………. 5

4.References………………………………………….. 7

1.Introduction

This report shows you Apple’s iPhone supply chain. It will point out some areas that could be improved and will explain why Apple could have chosen this route for their supply chain.

2.Supply Chain Map

3.The Supply Chain

The supply chain for Apple’s iPhone is on the previous page. As you can see from the supply chain numerous different parts are needed to assemble an iPhone. Six out of the ten components needed in order to start constructing the iPhone come from Taiwan.

3.1 Figure 1

This could be seen as a threat to Apple and if they were to re-structure the supply chain I think that they should re consider using so many resources from one source. If Taiwan went into any type of economical decline or became politically corrupt in any way then that could completely destroy Apple’s iPhone industry. Six of the ten components could become unreachable for some time. It could be seen as a bottleneck in the supply chain and other phone manufacturers could take advantage of this and be able to source their parts more quickly and cost effectively. Apple could have been looking at it from a different angle though. They may have seen it as a cost saving way of getting the majority of the parts needed. They can use one shipment to carry them all and only have to pay import and export taxes in one transaction.

I don’t believe that the supply chain is operating to its full potential and therefore chain reversal is needed. This will only be realised through improved vertical co-ordination thoughout the entire supply chain. It is going to mean that there will be major changes in the structure, culture and behaviour of the all the firms involved in sourcing...
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