Apple Supply Chain: Low Cost Manufacturing and Shipping

Topics: Apple Inc., IPhone, IPod Pages: 2 (620 words) Published: January 27, 2013
Apple Inc. is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod, the iPhone, and the iPad. Its software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977.[6] The word "Computer" was removed from its name on January 9, 2007, reflecting its shifted focus towards consumer electronics after the introduction of the iPhone.

Apple, the Cupertino-based tech company, reported record revenue of US$ 46.33 billion and record net profit of US$ 13 billion for the quarter ended December 31, 2011. Most people think that this success is the result of Apple having iconic products. Well, it may be true that Apple’s products are exceptional, but the company’s top-notch distribution is also a major factor behind its success. Here’s more information on Apple’s distribution strategy. Before we discuss Apple’s distribution, it may be in order to define distribution. Distribution is the movement of goods or services from the point of production, through distributional channels, to the end consumer. Some important elements of Apple’s distribution strategy are: Low-cost manufacturing and shipping

In order to save costs, Apple has contracted the manufacturing of its gadgets to Foxconn, a Taiwan-based company with factories in China, where production costs are much lower than in the U.S. Apple also enters into exclusive deals with high-tech component manufacturers so that it is assured of supply. Foxconn ships the manufactured items from its Chinese factories to warehouses in the U.S. and elsewhere. Retail...
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