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Apple Case Study

Apple case study discusses Apple's decision to outsource iPhone assembly to China in the 2000s. It provides benefits like lower labor costs, access to skilled workers, proximity to suppliers, and the ability to quickly scale production. However, there are also costs and risks, such as lower quality control, potential strikes, intellectual property theft, and damage to Apple's brand from poor working conditions. The potential losers are Apple if trade wars increase costs, Chinese citizens who face environmental impacts, and U.S. workers who lose jobs to outsourcing.

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Rabib Ahmed
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140 views

Apple Case Study

Apple case study discusses Apple's decision to outsource iPhone assembly to China in the 2000s. It provides benefits like lower labor costs, access to skilled workers, proximity to suppliers, and the ability to quickly scale production. However, there are also costs and risks, such as lower quality control, potential strikes, intellectual property theft, and damage to Apple's brand from poor working conditions. The potential losers are Apple if trade wars increase costs, Chinese citizens who face environmental impacts, and U.S. workers who lose jobs to outsourcing.

Uploaded by

Rabib Ahmed
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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APPLE CASE STUDY

MEMBERS
Sashwot Kharel-1831755630
Rabib Ahmed-1831880630
Firdaus Nyaminhingo-1831322030
Munshi Daheyatun Kalbee-1831551030

Group-Green
INTRODUCTION
• The following case study looks like a conversion between Mr. Obama and
Mr. Jobs

• By 2004, Apple turned to foreign manufacturing.

• Apple started to produce in China.


Questions
What are the benefits to apple of outsourcing the assembly of the iPhone to
foreign countries, and particularly china? Explain with example.

• Better quality & cheap workers- Workers in China are much more skilled than US workers besides, they work at a
mush lower wage.

• Better plants and factories- US plants cannot match the speed and flexibility of the Chinese factories and as such
Apple got benefited

• Government Subsidy- Chinese government provided subsidies to Chinese firms and and such they can pass on
Apple in the for of lower cost.

• Ease of Accessibility of Supplies- Most of the components of Apple are produced in Chinese

• Efficiency in finding Engineers – In China, Apple got 8,700 industrial engineers in just 15 days while, in US, it
would take 9 months.
What are the potential cost and risk to Apple? What are their costs of
continuing business?

COST & RISK


• Poor Quality- Workers work longer than expected and as such their productivity may fall
and results in poor quality.

• Workers May Strike- Due to low pay.

• Demotivate Workers- Due to overtime.

• Plagiarism – Apple needs to share their innovative ideas to the suppliers and they may sell
the confidential informations to another company.
Cost of Continuing Business

• Brand Image- work environment related issues- Subcontractors have been targeted
for poor working condition dues to poor safety measures.

• US – CHINA trade war


In this whole scenario who are the potential losers? Explain with
justification.

• Apple- Apple lost $42 billion in market value after imposing the tariff on Chinese products.

• Chinese Citizens- Production of Apple causing environmental degradation in the country, hence,
adversely affecting its people.

• Chinese Mobile Manufacturer- Apple’s production in China causing Chinese companies to lose their
competitive advantage.

• USA- Outsourcing reduced the job opportunities.


Balance of payment deficit.
CONCLUSION
•

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