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Apple 'understands supply chain limitations'


05/02/2008 14:49 
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With the launch of the iPhone, technology giant Apple has recognised the strengths and limitations of global supply chains, it has been claimed.

Jeremy N Smith, writing for World Trade magazine, reports that the launch of the iPhone was a logistics landmark for the firm precisely due to this understanding of the role of the supply chain in business.

He notes that a top-quality supply chain can only provide large profits for "producers", with the 21st century meaning of that term referring to those responsible for the logistical, financial and managerial aspects of growth, supply and manufacturing.

Researchers from the Sloan Foundation found that the $80 (£40) gross profit on the original video iPod from Apple exceeds the price of any single input.

"It is definitely greater than the value added for any of its partners," the research team said.

It concluded that producers create value through transformation of innovations into useful and usable products.

The Apple iPhone boasts a range of technical features, including an eight-gigabyte flash drive and 3.5-inch widescreen multi-touch display.

 
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