Yes, outsourcing is a business strategy that even the blue chip companies are resorting to. 4. 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. We will focus primarily on Apple’s hottest product, the iPhone. Following are benefits which apple can obtain after outsourcing the IT. In the event, Apple declares that it was also about the convenience of the service that was available in China. 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. Apple’s outsourcing strategy it’s evident when you read the back of your iPhone – Desing by Apple in California. 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… Goertek and Luxshare are two Chinese companies that have been in the Apple supplier spotlight. 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. 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. 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 Apple is one of the biggest companies on the market today and included to the list of companies that outsource. 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. Explain your reasoning. Apple earned over $400,000 in profit per employee in 2011, more than Goldman Sachs or Exxon. 1. Outsourcing will continue 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. And you thought the iPhone was made in China. It also outsourced plenty of work to Indian IT services companies. As we're able to see, Apple's manufacturing and outsourcing of products is diverse and sprawls across numerous countries around the world. Another advantage that outsourcing offered Apple with is the engineers required for the iPhone production. By clicking Send Me The Sample you agree on the, Apple’s marketing relationship building with the target customers, Ask Writer For Capgemini A French IT company, Capgemini is present in over 36 countries with a staff well over 100,000. Help. 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. First off, the ones who benefit the most from Apple contracting out to China, is China. Discover the keys to successful outsourcing … Your Answer is very helpful for Us Thank you a lot! (2016, Sep 13). 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. 1 Reason We Make iPhones in China (It's Not What You Think) China is much … Here’s the 5 W’s of Apple and their outsourcing network! We use cookies to give you the best experience possible. 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. 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. 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. Who are the possible losers here? you have an iPhone. 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. Here’s the basic information of the 22 US companies that outsource jobs abroad. 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. 3. 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. Join your host Bobby Dewrell and a variety of guests. 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. 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. Also Study: Is Outsourcing … 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 … The tech giant headquartered in Apple Park, California famously outsources most of its supply chain to offshore partners. Although Apple declares that the decision wasn’t about the inexpensive labor, all of it boils down to the cash. Although it is true that labor is cheaper in foreign countries than here in the. Companies Outsourcing Manufacturing. What are the potential ethical problems associated with outsourcing assembly jobs to Foxconn in China? The choice was rooted in the fact that it would save Apple a lot of money. So Apple might face a strong rival or imitators that might put their company at risk. This is a major ethical problem because of the fact that Apple is not actively trying to correct that situation. Step into our Top 10 and find out as we explore the best outsourcing companies in the world. Apple is only selling their products to the American people; they are not giving back to them in any other way. Apple is providing China with more job opportunities which benefit their economy. (309). Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are 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. Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. What are the potential expenses and dangers to Apple? Boosta Ltd - 10 Kyriakou Matsi, Liliana building, office 203, 1082, Nicosia, Cyprus. 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. 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. Major partnerships include Intel and Microsoft. Conclusion.   Terms. China will charge a higher rate, however insufficient to where Apple with discover another country to outsource to. 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. 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. Get a verified writer to help you with Who Makes the Apple iPhone: Apple Outsourcing Analysis. 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). The losers in this case would definitely have to be the US for a number of reasons. Apple gets a lot of stick about manufacturing in China, and the issue came up again recently with the release of the iPhone 5. 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. Apple, as an example of the latter, relies on outsourcing to fulfill their operations model. However, the working conditions of their employees overseas is not what most of us can stomach. 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. Apple. Bringing Innovation to Market Apple CEO Tim Cook: This Is the No. 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. 10. This preview shows page 1 - 2 out of 5 pages. 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. there’s a good chance that you have an enormous workforce and a solid global presence. Apple. In each episode, we’ll address common challenges faced by companies who work with nearshore or offshore software development teams. ‎Accelerance presents The Software Outsourcing show. 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? 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. In addition to Apple, who else take advantage of Apple’s choice to outsource assembly to China? Additional Apple Card Monthly Installments and iPhone Payments terms apply. also offered here. You take a speaker, a microphone, a processor, a CPU, a case, a. battery, and a touch glass screen and presto! 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. So Apple deciding to outsource their assembly line to China is a bad thing for the US. In each case, the companies … 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. 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.   Privacy 2. has outsourcing become a key element in shaping functional tactics for most firms today? As stated previously, outsourcing does not benefit the American people or economy. 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. But have you ever read the back of your Iphone stating: "Designed by Apple in California, Assembled in China"? The truth is, in today's fast phase business developments if you are not open-minded you will find yourself filing for bankruptcy. Apple and Outsourcing . In many companies outsource software is developed to maintain the cost effectiveness, risks could be managed effectively and collaboration take place within the organization. And it's something every entrepreneur wanting to outsource should read. Don’t waste Your Time Searching For a Sample, Get Your Job Done By a Professional Skilled Writer. Who Makes the Apple iPhone: Apple Outsourcing Analysis. There are numerous benefits for Apple in outsourcing their assembly line to China. Course Hero, Inc. Students looking for free, top-notch essay and term paper samples on various topics. 4.8 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. By continuing we’ll assume you’re on board with our cookie policy, Categories Apple Inc, Iphone, Outsourcing. Apple deciding this simply benefits themselves more than anyone else. 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. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and especially China? How might Apple deal with these? China gets almost the most from Apple deciding to outsource. 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. Technology Outsourcing Don'ts Learned From Apple The company's latest supplier responsibility report is out. Course Hero is not sponsored or endorsed by any college or university. 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. The next one that gets the most benefit from this outsourcing is Chinas economy. Another advantage that outsourcing offered Apple with is the engineers required for the iPhone production. Though their products are designed in California, Apple devices, especially iPhones, are manufactured all around the world. make a blanket statement about producing the iPhone? When you are a $108 billion dollar company and number 56 on the Fortune 1,000 list. Foxconn operates in over ten countries and is a great example of the U.S. outsourcing as well as Apple’s outsourcing. 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). In its developing stages, another giant that saw the value in outsourcing was Apple. Both companies agreed to set up productions in … All of these decisions in the end do not benefit the American economy as much as the Chinese economy. You read the back of your iPhone – Desing by Apple in California, Apple devices, especially,... 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