The ultimate losers are the people in the United States because they lose jobs because Apple has outsourced the available jobs to China. 38614, posted 07 May 2012 12:36 UTC . 2. The New York Times articles exposed the inhumane working conditions of the Foxconn employees, conditions that should cause us to question the … China’s outsourcing market grew by 30% in 2014, and a lot of companies from other countries have moved their own headquarters to China to establish a business. The benefits to Apple of outsourcing the assembly of the iPhone to foreign countries include reduction in the cost to Apple as Chinese labor is available at a lower cost as compared to American labor as China has the largest population in the world. A few years after Apple started to make the Macintosh computer back in 1983, Steve Jobs bragged that it was a machine that was made in America. 3. In fact, China is no longer a cheap outsourcing hub but is pretty much unbeatable in key stakes such as manufacturing speed, flexibility, and sheer … What are the potential costs and risks to Apple? The factory employers and employees in China benefit from Apple’s decision to outsource as more number of jobs are created in China. Mr. Hillsberg, courtesy of an info-graphic shows that the time it takes to hire 8,700 engineers to oversee 200,000 factory workers. Apple is more secretive about its supply chain in China than almost all of its rivals, according to a new report by anti-pollution activists who accuse the company's products of … 3. Technology Outsourcing Don'ts Learned From Apple The company's latest supplier responsibility report is out. 0. Dive Brief: China's "iPhone City" in Zhengzhou — which hosts Apple's manufacturing partner, Foxconn Technology Group, and can produce 500,000 iPhones a day — is emblematic of the local incentive system behind many companies' offshoring decisions, according to a recent New York Times report. Case Study 1 In its early days, Apple usually didn’t look beyond its own backyard to manufacture its devices. That is a staggering amount of time lost. As a rule of thumb, we typically expect manufacturing in China to be about 50% of the cost of manufacturing in the US or Western Europe. “A great amount of Apple’s supply chain success can be attributed to them continuing to design their products in California, while leveraging the lower cost of outsourcing manufacturing to China.” – Original quote from Jonathan Hamilton (IT Consultant) – Source Econlife. 2. In the case of Apple, outsourcing manufacturing is not about keeping costs to customers down - they are still paying huge prices for the latest handset or tablet computer. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? Urakami Asia Management Research - Research Note 1 Outsourcing and corporate social responsibility - Apple in China - May 7, 2012 Kiyoshi Urakami Key … America does not produce iPhones here because we, the average middle-class American family, demand that Apple outsource its production to China. The cost of shipping from a remote city in China (where most factories are) versus the cost of shipping from somewhere in the U.S. will be drastically different. The 10 largest shareholders of Apple … On the other hand, loss of control over the outsourced function is often a potential business risk. Who are the potential losers here? Advantages Of Outsourcing. They get the benefits of low production costs and, in many cases. What are the potential costs and risks to Apple? 1. The decision wasn’t driven by cheap labor costs in Asia. Case Study 1 In its early days, Apple usually didnt look beyond its own backyard to manufacture its devices. Apple, for instance, relies on hundreds of thousands of Chinese workers to build its products. The pragmatic side of Steve Jobs and Apple with outsourcing. Apple produces most of its products such as iPods, iPod minis and iPhone in China, thus ensuring a very low production cost and an increased US market attractiveness (Scribd, 2011).The single most important reason for outsourcing iPod and iPhone production to China is that the manufacturing costs are significantly lower than what it would cost to assemble in the United States or Europe. Engineers in China were much easier to find. There are several important factors to be considered in such a major decision…. We have all become accustomed to the cost effectiveness of product outsourcing to China. Outsourcing and corporate social responsibility : Apple in China Urakami, Kiyoshi Urakami Asia Management Research 7 May 2012 Online at https://mpra.ub.uni-muenchen.de/38614/ MPRA Paper No. Here are three reasons to give this a try: 1. What are the potential costs and risks to Apple? Apple has China labor problems -- again. It offers unrivalled capacity for manufacturing a wide range of products at the lowest prices. Apple, Adidas, Hewlett Packard and First Solar are among the many companies that have chosen to use third-party manufacturing companies to help fulfill the demand for their products. Outsourcing manufacturing to China can unlock value for your company and help bring your new products to market quickly and efficiently. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? By Erik Sherman July 29, 2013 / 12:13 PM / MoneyWatch (MoneyWatch) It has been more than three years since Apple… And it's something every entrepreneur wanting to outsource should read. A few years after Apple started to make the Macintosh computer back in 1983, Steve Jobs bragged that it … However, as this industry has grown and matured, so have the pitfalls that come with it. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? Who better than the tech luminary to explain why the company he co-founded favored China over domestic manufacturing? Bringing Innovation to Market Apple CEO Tim Cook: This Is the No. direct market access to Asian consumers. As Mac sales plummeted and inventories began to bulge in the mid-1990s, Apple had to embrace outsourcing, … The reason Apple makes iPhones and iPads in China, the article shows, is not just about money. Advantages of outsourcing. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? The benefits of outsourcing can be substantial - from cost savings and efficiency gains to greater competitive advantage. Who are the potential losers here? Apple’s China outsourcing reduces production time from 9 months to 15 days. You should consider carefully the pros and cons of outsourcing before deciding to contract out any activities or business operations. Although Apple declares that the decision wasn’t about the inexpensive labor, all of it boils down to the cash. On January 13, 2020January 13, 2020 By admin_admin. The time response for production from China attracted Apple the most. 1 Reason We Make iPhones in China (It's Not What You Think) China is much more than a … Apple’s Supply Chain … Case Study 1 In its early days, Apple usually didn’t look beyond its own backyard to manufacture its devices. In addition to Apple, who else benefits from Apple's decision to outsource assembly to China? “I’ll make it in China” is the default assumption for most consumer and light-industrial product companies. Knowing the benefits of outsourcing will help you decide if this is something that could work for your business. In China, this process takes 15 days, in the United States this same hiring process would take nine months. This helps in the reduction of the average cost of production and thus help in realizing the economies of scale in production. Home / What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? Competitive demands and the pinpoint timing of major product launches mean that Apple … The choice was rooted in the fact that it would save Apple a lot of money. There are numerous benefits for Apple in outsourcing their assembly line to China. Apple’s leading reason to outsourcing its products from China was because of its subcontractors. 0. The top destination for Apple’s outsourcing is India: Where big companies (Apple, Google & Facebook) outsource development (Image source) In 2012, the news on Apple's decision to collaborate with software developers in India was shared online, yet not so many details were revealed. Finances forced Apple to change course. On January 31, 2019January 31, 2019 By admin_admin. The advantages to Apple outsourcing its production to factories in China include superior responsiveness, superior scale, flexibility, diligence, and access to industrial skills. … Apple Inc. (NASDAQ: AAPL) announced Friday morning that it will invest more than 3.5 billion yuan (about $506 million) to establish research and development centers in Shanghai and Suzhou, China. In China, factories are close to each other when any assembly plant needs supply, they just need to go next door for supplies. 2. Shifting manufacturing operations to other countries can be a massive undertaking. An example of the superior responsiveness, in assembly, to Apple’s needs is the impres sive speed and flexibility of Chinese factories to accommodate a change request. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? Case Study 1 In its early days, Apple usually didnt look beyond its own backyard to manufacture its devices. 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. A few years after Apple started to make the Macintosh computer back in 1983, Steve Jobs bragged that it was ‘a machine that was made in America’. Home / What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries and particularly China? Why Apple outsources to China (image source) Another major reason why Apple outsources is that the US does not provide the desired talent pool. What are the potential costs and risks to Apple? Although few know exactly how much the Chinese government bestowed upon Foxconn to … The Los Angeles Times opinions staff felt the pangs of conviction when The New York Times released a series of articles exposing the harsh labor standards of Apple employees at Foxconn in Shenzhen, China where Apple products are made. In addition to Apple, who else benefits from Apple's decision to outsource assembly to China? Labor problems -- again reason to outsourcing its products from China was because its... 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