The main thing came to mind of the people that where the parts of each apple technological products are made. This seems to be important because everyone has the right to know that the product which they are using is whether original or fake, copied from other source or made originally by the company itself.
Apple’s mostly products are made outside the U.S because of supply chain relationships with other countries. Different parts are produced in different countries. Batteries are produced by Samsung in South Korea and Huizhou Desay Battery in China. Cameras are bought from Sony in Japan, Omni vision from the United States also manufactures it but forward these parts for outsourcing in TMSC in Taiwan.
The chipsets and processors are manufactured by Samsung in South Korea and from TMSC in Taiwan with the partners, Global foundries in U.S. Display screens are manufactured from Display and the sharp company of Japan in South Korea. The new technology fingerprint sensor authentication development is created in China but they outsource it to Taiwan for outsourcing. The Flash memory is created by Toshiba in Japan and by Samsung in South Korea.
Its Radio Frequency Modules are created by the company Win Semiconductors in Taiwan but further, it is processed in Qualcomm Company in the United States for the LTE connectivity in it. Touch id Sensors are created in TSMC and Xintex Company situated in Taiwan. Inductor Coils from TDK in Japan. Main signal chips from NXP in Netherland… (Minasians, 2017). Plastic construction for phone 5c from Hi-pad and green point from Singapore. Gyroscopes are produced by ST Microelectronics Company located in France and Italy.
Few of its parts are created in the U.S. as well which are Semiconductors made in Texas Instruments, Fairchild and Maxim integrated into the U.S. Transmitter and amplification modules are made in Skyworks and Qorvo from U.S. Touchscreen controller is made in Broadcom in U.S. Screen and glass for display are corning Gorilla glass made in U.S. As you can see a number of countries are involved in the manufacturing of Apple products because of supply chain relationship with them.
Its outsourcing most of the times placed in the U.S. The designing of apple products, the system development of its products and internal functioning of its products are all done by the Apple itself. The software’s are built by Apple itself and marketing and management working is also done by Apple as well. The comparative advantage of manufacturing its body parts of products from other countries is that products are presented in more presentable and interesting way to the consumers for use.
A business always needs advantages and facilities to develop. Apple is the world largest Information technology company and world’s second largest company in the creation of smartphones because the first one is Samsung. Apple is U.S first ever company which earns a large amount of revenue every year recently calculate which was $700 billion approximately. The company had a number of employees more than 123,000 and had 44 retails stores in more than 22 countries.
Apple has now created many other accessories like air pods, Watches and smart T.Vs with latest technologies that no one can compete in efficiency. The phone invention is the game changer for the company’s financial position because it takes the company to the highest level of earning. At the launch, Apple sold more than 270,000 I phones unit in first 30 hours of selling this technology. It takes advantage of its new inventions that they attracted customers, so much which increases its sales rapidly and vastly among people.
Now a day it also has Applications in mobile phones it has iTunes, I cloud, Apple music and App store name Apps, which provides users with all type of songs and the facility to download it’s all features and other applications information whatever they wanted to know. Apple technologies are so much advanced and unique that no one can match it in terms of efficient working. Apple has its own retail store as well which was established in 2001 by Steve. (Carmen Elena Dorobat, 2015)
Benefit From Comparative Advantage
Apple Inc for the purpose of efficiency and less cost of production take other countries companies services for the production of its products body parts. The cost of production from China is very low with the best quality as well, therefore, the Apple orders for the most of its products parts to China. Apple uses comparative advantages strategy with other countries because of the low cost of production taking into account the best quality as a must. People have a very strong test towards Apple Inc because Apple products are long lasting, reliable and give a great and efficient result always. Apple takes advantage with less cost that it 9is launching more and more features to its smartphones and other electronically and new technological appliances for the consumers which are making the lives of consumers efficient and quick also modernizing the era as well.
Foxconn is the world’s biggest electronic product supplier company in China with 1.2 billion employees. It is also known as Hon Hai Precision Industry, it is a wanes company. The company also produces electronic products for Amazon, dell, hew let and other big brands as well. This company has a very big network of working within an area. The company had a large number of employees because of good services and opportunities from the company
Foxconn has a reputation for great and fine working abilities and nice atmosphere with its employees. That makes the employees trust more towards the company. The Apple Inc had some issue related to the manufacturing of its body parts according to the designing passed by Apple itself. Apple expects high standards from suppliers who are going to make its sale high. The quality of working depends upon the working efficiency of workers.
Foxconn offers more wages to the employees so that they will work more efficiently and bitterly with the heart as well. The company Foxconn at one time has experienced many problems, which were suicides of workers due to overworking, and too much workload on them. (Hays, 2012)
Apple is an international company engaged in developing new technologies in its smartphones and Tablets. It was founded in April 1976 by three partners Steve Jobs, Steve Wozniak and Ronald Wayne. Their main target working was to cell Apple I personal computers. Its headquarter is located in California. This company is designing new and most attractive and stylish designs of smartphones and tablets as well.
This company also sells online services, consumer electronics and computer software’s as well. It also develops new software and hardware designs for PCs and laptops as well. Now this company had a large variety of smartphones called I phones which is the worlds most expensive and latest technology equipped smartphone. It has also developed tablets, iPads, iPods, PCs and laptops for the consumers with latest technologies inbuilt in it.
Apple cops up with this by offering a little higher amount in terms of cost of production to the company Foxconn. So that they will offer their workers more and the worker will work with more responsibility and efficiency.
The quality of body parts of products matters a lot for customer’s satisfaction. If quality is compromised then the consumer will losses its trust from the company, which automatically decreases its sale, and direct its profit level decreases. Customer’s satisfaction is the most important factor for the rapid development and increasing fame of the company throughout the life. (Beaudreau, 2016)
You may also study:
- Beaudreau, B. C. (2016, February 06). Competitive and Comparative Advantage: Towards a Unified Theory of International Trade. Retrieved from https://www.tandfonline.com/doi/abs/10.1080/10168737.2015.1136664?src=recsys&journalCode=riej20
- Carmen Elena Dorobat, M.-V. T. (2015). Entrepreneurship and Comparative Advantage. The Journal of Entrepreneurship.
- Hays, J. (2012, April). Retrieved from APPLE AND FOXCONN: WORK CONDITIONS, PROBLEMS AND CHANGES: https://factsanddetails.com/china/cat9/sub61/item2282.html#
- Minasians, C. (2017, September 18). Where are Apple products made? Retrieved from https://www.macworld.co.uk/feature/apple/where-are-apple-products-made-3633832