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Caste Study Apple

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1. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the potential cost and risk to apple?
- The benefits to Apple of outsourcing the assembly of the iPhone to foreign countries particularly targeting China is that the labor cost and cost for production is much lower in China allowing them to mass produce their product, though that is not the main focus and that it’s a small factor of the total value of the product. Apple says that one of the most important things for their business is the ability for Chinese contractors to respond quickly to request from their business to scale production. Steve jobs was an innovator and always looked to the most advanced technology to reflect in his product. An advantage that Steve Jobs found when it came to China is that the factories in China were ahead of what was thought about as advance technology and what Steve Jobs thought would improve his products, China was already forward thinking and implementing this ideas. The factories where dedicated to maintaining a current working system to keep up with the demand and Apples production schedule. This allow Steve Jobs to quickly mass produce his ideas and products. With Apple being a huge company that involves a lot of dedication to keep the product up to date, having high employment rate for the company was also huge. It was easier and quicker to higher engineers to work in China. Stated in the Article “Apple calculated that about 8,700 industrial engineers were needed to oversee and guide the 200,000 assembly-line workers involved in manufacturing the iPhone”. Another huge benefit of outsourcing and manufacturing their product in China is that a lot of the factories are close together, which ultimately made it easier and more convenient for engineers and workers to get whatever tools and supply they

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