Apple Operations: Supply Chain Management

akugami · 11-07-2011, 07:29 AM

Business Week Link

I found this article interesting. When I read it, the first thing I thought of was that Apple is applying the same tactics as Wal-Mart to get lower prices due to the volume of business they do. The difference is Wal-Mart is sells lower priced items while Apple is on the luxury end. Pretty damn ruthless.

I also thought the article illustrates Apple's commitment to design. One of the reasons why Apple has garnered many industrial design awards over the years.

Interesting note is how Apple plans to increase money spent on the supply chain to double what it's currently spending. That doesn't bode well for competitors looking for parts.

alent1234 · 11-07-2011, 07:32 AM

that's why you see Android with large screens, Apple bought up all the 3.5" ones

when almost everything is the equivalent of open source and available to everyone you have to find new ways to be competitive. this is the difference between someone who's smart and someone who can just read a spreadsheet and only try to make the numbers a little smaller

Dulanic · 11-07-2011, 07:49 AM

Quote:

Originally Posted by alent1234

that's why you see Android with large screens, Apple bought up all the 3.5" ones

when almost everything is the equivalent of open source and available to everyone you have to find new ways to be competitive. this is the difference between someone who's smart and someone who can just read a spreadsheet and only try to make the numbers a little smaller

Wait so you truly believe that everyone wants a 3.5" screen and nothing larger? Wow....

alent1234 · 11-07-2011, 08:05 AM

i take it you didn't bother to read the article

Fingolfin269 · 11-07-2011, 08:34 AM

Quote:

Originally Posted by Dulanic

Wait so you truly believe that everyone wants a 3.5" screen and nothing larger? Wow....

I didn't take what he wrote like that at all. Maybe you should read it, and the article, again?

Pliablemoose · 11-07-2011, 08:45 AM

What Apple did with the iPad was disruptive, they could have sold it for much more than the 25% markup they make on it, but by massaging the supply chain, and keeping their markup low (for Apple), they creamed the competition with it.

Also, the guy who pulls off the supply chain/shipping magic was/is Tim Cook, not Jobs...

Dulanic · 11-07-2011, 08:50 AM

Quote:

Originally Posted by Fingolfin269

I didn't take what he wrote like that at all. Maybe you should read it, and the article, again?

I did read the article. His response to me implied that Apple bought up all the 3.5" displays and as such there was none for Android and that was the reason android phones use larger screens and not because of market demand for larger screens. I based my assumption off of his previous posts as this would follow that line.

Anyways.... there is no doubt Apple has major power in it's supply chain and over it's suppliers. The sad part to me is that that 100% goes to Apple's profits and never towards lower pricing of their devices. I find it down right hilarious that we have OWS people carrying around iPad's & iPhones as they bitch about corporate green and profits. They completely ignore the fact they support it.

Pliablemoose · 11-07-2011, 08:55 AM

Quote:

Originally Posted by Dulanic

I did read the article. His response to me implied that Apple bought up all the 3.5" displays and as such there was none for Android and that was the reason android phones use larger screens and not because of market demand for larger screens. I based my assumption off of his previous posts as this would follow that line.

Anyways.... there is no doubt Apple has major power in it's supply chain and over it's suppliers. The sad part to me is that that 100% goes to Apple's profits and never towards lower pricing of their devices. I find it down right hilarious that we have OWS people carrying around iPad's & iPhones as they bitch about corporate green and profits. They completely ignore the fact they support it.

Dude, 404 on your logic, Apple killed the early tablet market, Intel had to jump start the Ultrabook market with millions...

Without Apple to push the industry, many products you take for granted wouldn't even exist.

Oyeve · 11-07-2011, 08:57 AM

Quote:

Originally Posted by Dulanic

I did read the article. His response to me implied that Apple bought up all the 3.5" displays and as such there was none for Android and that was the reason android phones use larger screens and not because of market demand for larger screens. I based my assumption off of his previous posts as this would follow that line.

Anyways.... there is no doubt Apple has major power in it's supply chain and over it's suppliers. The sad part to me is that that 100% goes to Apple's profits and never towards lower pricing of their devices. I find it down right hilarious that we have OWS people carrying around iPad's & iPhones as they bitch about corporate green and profits. They completely ignore the fact they support it.

Well those ows guys are just hypocritical douchebags.

Dulanic · 11-07-2011, 09:01 AM

Quote:

Originally Posted by Pliablemoose

Dude, 404 on your logic, Apple killed the early tablet market, Intel had to jump start the Ultrabook market with millions...

Without Apple to push the industry, many products you take for granted wouldn't even exist.

I don't see where I argued against either of those points. Well except the point of many of the products... the only 1 I agree /w is tablets.

Dulanic · 11-07-2011, 09:10 AM

Quote:

Originally Posted by Oyeve

Well those ows guys are just hypocritical douchebags.

I'm not going to turn this into a P&N thread, I will just say I agree with some points but they are stupid with the way they go about it... and the carrying around iPad's while protesting corprate green is one of those ways they are stupid lol.

alent1234 · 11-07-2011, 09:24 AM

Quote:

Originally Posted by Dulanic

I did read the article. His response to me implied that Apple bought up all the 3.5" displays and as such there was none for Android and that was the reason android phones use larger screens and not because of market demand for larger screens. I based my assumption off of his previous posts as this would follow that line.

Anyways.... there is no doubt Apple has major power in it's supply chain and over it's suppliers. The sad part to me is that that 100% goes to Apple's profits and never towards lower pricing of their devices. I find it down right hilarious that we have OWS people carrying around iPad's & iPhones as they bitch about corporate green and profits. They completely ignore the fact they support it.

i remember when HTC used to have 3 screen sizes. i think it was last year they finally went to 4.3" and i'm sure the fact that apple probably cornered the market for smaller screens probably had something to do with it. same with metal laptop cases. apple cornered the market for the single piece aluminum case and HP had to use something cheaper for the Envy

I think i read somewhere that the lower priced iphones are the most profitable for apple and the carriers so HTC and Moto constantly pushing higher end products is not good for profitability

Rick James Astley · 11-07-2011, 09:28 AM

Quote:

Originally Posted by alent1234

i remember when HTC used to have 3 screen sizes. i think it was last year they finally went to 4.3"

Wrong, HTC had 4.3" screen phones in 2009.

alent1234 · 11-07-2011, 09:33 AM

and they used to have a lot of sub 4" screens. they even used to advertise them. apple is selling tens of millions of 3.5" phones but everyone else is only pushing 4" and higher phones

Bateluer · 11-07-2011, 09:36 AM

Quote:

Originally Posted by alent1234

I think i read somewhere that the lower priced iphones are the most profitable for apple and the carriers so HTC and Moto constantly pushing higher end products is not good for profitability

HTC seems to be doing alright in the profitability department.

Quote:

Originally Posted by alent1234

and they used to have a lot of sub 4" screens. they even used to advertise them. apple is selling tens of millions of 3.5" phones but everyone else is only pushing 4" and higher phones

How many people were clamoring for a 4in+ iPhone?

Pliablemoose · 11-07-2011, 09:40 AM

Quote:

Originally Posted by Dulanic

I don't see where I argued against either of those points. Well except the point of many of the products... the only 1 I agree /w is tablets.

And touch screen phones and ultrabooks...

Dulanic · 11-07-2011, 09:42 AM

Quote:

Originally Posted by Fingolfin269

I didn't take what he wrote like that at all. Maybe you should read it, and the article, again?

Didn't take long for him to prove I read his comment how he intended.

Dulanic · 11-07-2011, 09:45 AM

Quote:

Originally Posted by Pliablemoose

And touch screen phones and ultrabooks...

Touchscreen phones were around before the iPhone, I know as I owned some. I am not saying that Apple didn't make a push, but to think that we wouldn't have these products unless Apple was around..... Maybe it would have taken 6 months more etc.. but they would have been here.

Red Storm · 11-07-2011, 09:47 AM

Quote:

Originally Posted by alent1234

and they used to have a lot of sub 4" screens. they even used to advertise them. apple is selling tens of millions of 3.5" phones but everyone else is only pushing 4" and higher phones

Maybe because Android customers have shown a preference for larger screens (like me, and many other people on this forum alone)?

First we hear Android got to where it is only because of the cheap low end phones. Now apparently they only sell high end phones with large screens...

Dulanic · 11-07-2011, 09:54 AM

Quote:

Originally Posted by alent1234

and they used to have a lot of sub 4" screens. they even used to advertise them. apple is selling tens of millions of 3.5" phones but everyone else is only pushing 4" and higher phones

What is popular and wanted changes all the time.... HTC and Samsung are more than capable to providing smaller screens... ESPECIALLY Samsung since they make their displays. HTC has the EVO Shift for example.

Hell in Jan of this year 61% of iPhone users wanted a bigger screen.... and that was 9 months ago, I am sure it is even higher if this was polled now.

http://news.cnet.com/8301-17938_105-20029636-1.html

Oyeve · 11-07-2011, 09:55 AM

Quote:

Originally Posted by Dulanic

Touchscreen phones were around before the iPhone, I know as I owned some. I am not saying that Apple didn't make a push, but to think that we wouldn't have these products unless Apple was around..... Maybe it would have taken 6 months more etc.. but they would have been here.

Yep, years before iphone. I had a sony ericsson phone i got in europe in 2004 that had a large touchscreen.

Pliablemoose · 11-07-2011, 10:18 AM

Quote:

Originally Posted by Dulanic

Touchscreen phones were around before the iPhone, I know as I owned some. I am not saying that Apple didn't make a push, but to think that we wouldn't have these products unless Apple was around..... Maybe it would have taken 6 months more etc.. but they would have been here.

And Ultrabooks...

runawayprisoner · 11-07-2011, 10:23 AM

Quote:

Originally Posted by Dulanic

Touchscreen phones were around before the iPhone, I know as I owned some. I am not saying that Apple didn't make a push, but to think that we wouldn't have these products unless Apple was around..... Maybe it would have taken 6 months more etc.. but they would have been here.

I think this argument is a moot point because the same thing can be said about that first touchscreen phone. If the company that made it didn't do so, then someone else would eventually. And I'd agree that it's true... but the fact is that that company made it, and we can only see how that side of history developed into today. If that event was to change, things would be different.

That's very much an alternate universe kind of thinking in my opinions. The fact is... irregardless if the iPhone was the first of its kind or not, it sparked the birth of the smartphone market as it is today. Many phones today come in a form factor similar to the iPhone. It can be argued that that's because the iPhone has such a generic shape and size, but when Intel's Ultrabook starts spawning designs similar to the Macbook Air, that's a harder argument to present. I think that some copying was still in place, just more subtle. A prime example is how Android looked like before and after the iPhone was announced. But that's a debate that I think would go around in circles... much like the egg and chicken debate.

However, it's my belief that Apple did impact the industry in some way, even if you don't think much of their phones, tablets, or devices. And I think it's also kind of a fact that the industry was quite different prior to the phones, tablets, and devices that Apple pushed into the channel. Were there touchscreen phones prior to the iPhone? Absolutely. Did they have a smooth interface? Multitouch as standard? A browser that loaded full websites and supported most of Javascript? Over a day battery life? Runs on dual-core CPU with powerful mobile GPU? Have more RAM than most laptops in 2000? I think we already know the answer.

And again, Apple didn't do it first. I actually don't think they did. It's just that they succeeded first. And success is more important here.

Dulanic · 11-07-2011, 10:25 AM

Quote:

Originally Posted by Pliablemoose

And Ultrabooks...

Again, natural progression of technology. It was coming either way. Where there is a market, someone will create. But as I said before, I am not saying Apple didn't execute at a great level, but to say these items wouldn't exist is crazy. Maybe some of the items would be a little bit later, but they would be here either way.

runawayprisoner · 11-07-2011, 10:31 AM

Quote:

Originally Posted by Dulanic

Again, natural progression of technology. It was coming either way. Where there is a market, someone will create. But as I said before, I am not saying Apple didn't execute at a great level, but to say these items wouldn't exist is crazy. Maybe some of the items would be a little bit later, but they would be here either way.

They would be here in completely different forms too. It's like saying that if I didn't have a wife, my wife's kid would still be born anyway. Well, then another guy would be the father, and the kid wouldn't even look or act like my kid. It's a moot point.

I'm not talking about the iPhone or iPad, but about Ultrabooks.

Those things are blatantly similar to the Macbook Air, and considering there are many other ways to design ultra thin laptops, such as Sony has demonstrated in all those years, the newer Ultrabooks certainly don't impress.