What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and especially China? Although it is true that labor is cheaper in foreign countries than here in the. Following are benefits which apple can obtain after outsourcing the IT. is also a very good chance that you can’t even produce all the services and products that you, offer either as a company flagship product or a product that is sold in partnership with a smaller, We’ll take a good look at Apple Corporation and the extremely dynamic logistics that it, takes to bring multiple companies together using nearly every continent on the Earth and a, foreign workforce of over 700,000 people and a total influenced workforce of over 1,000,000. Not long ago, Apple boasted that their products were “Made in the USA,” but like most tech companies, they have sought to manufacture their products abroad for the sake of price and productivity. How might Apple deal with these? Apple is providing China with more job opportunities which benefit their economy.   Terms. By clicking Send Me The Sample you agree on the, Apple’s marketing relationship building with the target customers, Ask Writer For In many companies outsource software is developed to maintain the cost effectiveness, risks could be managed effectively and collaboration take place within the organization. Apple’s outsourcing strategy it’s evident when you read the back of your iPhone – Desing by Apple in California. This preview shows page 1 - 2 out of 5 pages. Who are the possible losers here? has outsourcing become a key element in shaping functional tactics for most firms today? Yes, outsourcing is a business strategy that even the blue chip companies are resorting to. Some expenses and dangers that Apple deals with in the future could be that China will raise their prices however not greater than what is would costs Apple to return the assembly line to the US. Step into our Top 10 and find out as we explore the best outsourcing companies in the world. Apple, Google, Dell, Microsoft and Tesla have been named in a lawsuit alleging the exploitation of underage labor in the Democratic Republic of Congo (DRC). So Apple might face a strong rival or imitators that might put their company at risk. Apple Inc. is a very powerful American company that has been outsourcing its manufacturing in a very successful manner and for a very long time as, majority of its manufacturing takes place in China. Apple earned over $400,000 in profit per employee in 2011, more than Goldman Sachs or Exxon. However, given Apple’s high profile in the market, the company’s ‘insourcing’ initiative could compel other companies to follow suit and transfer production to the United States over the next few years.” Apple is apt to shift only a small percentage of its total production to the United States next year. Also Study: Is Outsourcing … In the event, Apple declares that it was also about the convenience of the service that was available in China. In each case, the companies … Here’s the 5 W’s of Apple and their outsourcing network! The choice was rooted in the fact that it would save Apple a lot of money. 4.8 Bringing Innovation to Market Apple CEO Tim Cook: This Is the No. Apple, as an example of the latter, relies on outsourcing to fulfill their operations model. Though their products are designed in California, Apple devices, especially iPhones, are manufactured all around the world. Who Makes the Apple iPhone: Apple Outsourcing Analysis. There are many American citizens that simply do not agree with Apple’s decision to outsource their jobs to China, because it doesn’t benefit the American people but rather only Apple. Help. According to a recent studyon why businesses outsource, the three top reasons are to: 1. reduce the cost of the project 2. have more control over the core functions 3. find solutions to capacity issues Here are some other advantages of outsou… 1 Reason We Make iPhones in China (It's Not What You Think) China is much … When you are a $108 billion dollar company and number 56 on the Fortune 1,000 list. Goertek and Luxshare are two Chinese companies that have been in the Apple supplier spotlight. Another advantage that outsourcing offered Apple with is the engineers required for the iPhone production. also offered here. 1. On balancing, do you think that the kind of outsourcing undertaken by Apple is a good thing or a bad thing for the American economy? There are numerous benefits for Apple in outsourcing their assembly line to China. In each episode, we’ll address common challenges faced by companies who work with nearshore or offshore software development teams. It is reasonable that a business looks for to lower their manufacturing costs, however Apple needs to admit that the relocation was about the cash rather of indicating other factors. A new report uses Apple and its recent history to look at why the success of some U.S. firms hasn't led to more U.S. jobs. The most obvious ethical problem with outsourcing assembly jobs to Foxconn is that they dismissed the American people as though they are not worth offering the jobs to. All the companies that outsource in this list are part of a very competitive market, the consumer electronics market, a segment with already strongly established brands, and new ones popping up every year in hopes of getting some of the market shares. 2. University of Phoenix • BUSINESS M 098883, Locke_Brandi_MT499 Bachelors Capstone in Management_Unit1 and 2 combined assignment, Amber Justis _MT460_Case_Study_Analysis UNIT 6, Copyright © 2020. ‎Accelerance presents The Software Outsourcing show. Apple deciding this simply benefits themselves more than anyone else. And it's something every entrepreneur wanting to outsource should read. To access and use all the features of Apple Card, you must add Apple Card to Wallet on an iPhone or iPad with iOS 12.4 or later or iPadOS. 3. Apple is one of the biggest companies on the market today and included to the list of companies that outsource. (2016, Sep 13). It has been since the 1970s that the concept of outsourcing is being used however; it is only in the recent years that it has become very popular as big companies such as Apple have started making use of it. In addition to Apple, who else take advantage of Apple’s choice to outsource assembly to China? So Apple deciding to outsource their assembly line to China is a bad thing for the US. In its developing stages, another giant that saw the value in outsourcing was Apple. We use cookies to give you the best experience possible. Additional ethical problems are the fact that Apple went to China for their cheap labor, and are continuing to operate their knowing that there are many employees in those factories that being mistreated. Another advantage that outsourcing offered Apple with is the engineers required for the iPhone production. However, the working conditions of their employees overseas is not what most of us can stomach. What are the potential expenses and dangers to Apple? Here’s the basic information of the 22 US companies that outsource jobs abroad. Students looking for free, top-notch essay and term paper samples on various topics. The company signs all its products, "Designed by Apple in California," but in the U.S., design is as far as Apple is willing to go. you have an iPhone. We will focus primarily on Apple’s hottest product, the iPhone. outsourcing business in Asia, and, secondly, we look into Apple Inc.'s supply chain to examine Apple supplier factory operations in Mainland China from, primarily, an environmental protection point of view. It also outsourced plenty of work to Indian IT services companies. First off, the ones who benefit the most from Apple contracting out to China, is China. (309). Discover the keys to successful outsourcing … Apple’s Steve Jobs opinion of outsourcing Last updated: September 12, 2019 by Derek Gallimore Apple co-founder, the late Steve Jobs is hailed as an iconic entrepreneur and inventor, who continues to inspire generations of business leaders. Don’t waste Your Time Searching For a Sample, Get Your Job Done By a Professional Skilled Writer. You take a speaker, a microphone, a processor, a CPU, a case, a. battery, and a touch glass screen and presto! Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are Technology Outsourcing Don'ts Learned From Apple The company's latest supplier responsibility report is out. Apple quietly sidestepped a crackdown on its much-maligned Ireland tax avoidance practice by moving its overseas operation to the tax haven of the Channel Island of … They benefit the most since they know every detail about how the product is made, they now have numerous thousands more jobs offered, and likewise because it is increasing their economy. Apple is charging the US citizens a lot of money to own an iPhone while at the same time not giving much back to the people. When you think of outsourcing to foreign countries many individuals believe that the, only reason a company would do this is for the amount of money that they would save in the, labor process.   Privacy While the fact of its manufacturing being outsourced to Asia, mostly China, has been clear for years, the offshore software partners are discussed less in the media. Conclusion. Apple required an amount of engineers for the job, and it was priced estimate that it would take 15 days to find the engineers in China instead of 9 months in the US. All of these decisions in the end do not benefit the American economy as much as the Chinese economy. About $100 million is currently spent at Apple to outsource such work to Indian companies, with the nation representing about a fifth of Apple's total outsourcing dollars. Foxconn operates in over ten countries and is a great example of the U.S. outsourcing as well as Apple’s outsourcing. Apple. Apple required an amount of engineers for the job, and it was priced estimate that it would take 15 days to find the engineers in China instead of 9 months in the US. Outsourcing will continue Apple gets a lot of stick about manufacturing in China, and the issue came up again recently with the release of the iPhone 5. By continuing we’ll assume you’re on board with our cookie policy, Categories Apple Inc, Iphone, Outsourcing. The Foxconn employees are being demanded to work overtime, they are not being paid properly and that they are simply misusing and taking advantage of the situation all for Apple’s benefit. What are the potential ethical problems associated with outsourcing assembly jobs to Foxconn in China? 4. Additional Apple Card Monthly Installments and iPhone Payments terms apply. Apple isn’t giving much back in to the economy in the sense that they could have not outsourced and provided with many and many of Americans with job opportunities, but they didn’t. 10. Your Answer is very helpful for Us Thank you a lot! there’s a good chance that you have an enormous workforce and a solid global presence. That includes rare Earth minerals from Mongolia, engineering from, the U.S., CPU and battery from Korea and Taiwan, display technology from Samsung (61. countries of operation and 221,000 employees), and touch glass from Europe (Kabin, 2013). Apple is only selling their products to the American people; they are not giving back to them in any other way. Course Hero is not sponsored or endorsed by any college or university. Join your host Bobby Dewrell and a variety of guests. Companies Outsourcing Manufacturing. But while HP and Dell have become associated with outsourcing, Apple’s prowess at turning out products that capture the popular imagination has kept it from being tainted with the image of being a labor exporter. Course Hero, Inc. Apple Supplier Responsibility 2019 Supplier List 2 Supplier Name Manufacturing Location 3M Company 905 Adams Street, Hutchinson, Minnesota, United States 3M Company 5500 Oaza Osanagi, Higashine, Yamagata, Japan 3M Company 3406 E. Pleasant Street, Knoxville, Iowa, United States 3M Company 235 Zhongyuan Road, Suzhou, Jiangsu, China They declared that they could order a change in the manufacturing of the product which China would be able to accommodate them practically right away. The truth is, in today's fast phase business developments if you are not open-minded you will find yourself filing for bankruptcy. China will charge a higher rate, however insufficient to where Apple with discover another country to outsource to. China gets almost the most from Apple deciding to outsource. This is a major ethical problem because of the fact that Apple is not actively trying to correct that situation. make a blanket statement about producing the iPhone? Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. Apple and Outsourcing . Retrieved from https://studymoose.com/who-makes-the-apple-iphone-apple-outsourcing-analysis-essay, Copying content is not allowed on this website, Ask a professional writer to help you with your text, Give us your email and we'll send you the essay you need, Please indicate where to send you the sample. The next one that gets the most benefit from this outsourcing is Chinas economy. Boosta Ltd - 10 Kyriakou Matsi, Liliana building, office 203, 1082, Nicosia, Cyprus. The tech giant headquartered in Apple Park, California famously outsources most of its supply chain to offshore partners. Both companies agreed to set up productions in … When it comes to the company Apple who sells the iPhone, iPad, computers and many, other electronic devices it is well known that they outsource their work to other countries such as, China. The losers in this case would definitely have to be the US for a number of reasons. Another risk that Apple might deal with is that China will quickly imitate their products, due to the basic truths that they are the ones putting everything together and they are the ones that know all the details about the iPhone. Major partnerships include Intel and Microsoft. Although Apple declares that the decision wasn’t about the inexpensive labor, all of it boils down to the cash. As stated previously, outsourcing does not benefit the American people or economy. Get a verified writer to help you with Who Makes the Apple iPhone: Apple Outsourcing Analysis. And you thought the iPhone was made in China. Capgemini A French IT company, Capgemini is present in over 36 countries with a staff well over 100,000. Explain your reasoning. Apple. In general, companies have been outsourcing more and more over the last decade, and it’s pretty reasonable to do so from a business perspective because of the benefits of outsourcing IT. As we're able to see, Apple's manufacturing and outsourcing of products is diverse and sprawls across numerous countries around the world. apple outsourcing - Apple An American Company with a Global Presence When you are a $108 billion dollar company and number 56 on the Fortune 1,000 list, Apple: An American Company with a Global Presence. But have you ever read the back of your Iphone stating: "Designed by Apple in California, Assembled in China"? To manage Apple Card Monthly Installments, you need an iPhone with iOS 13.2 or later or an iPad with iPadOS 13.2 or later. Our cookie policy, Categories Apple Inc, iPhone, outsourcing does not benefit the most benefit from outsourcing. Stages, another giant that saw the value in outsourcing was Apple assembly to... 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