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New Delhi.

Hill & Arun K. Jain, 10th edition , Mc Graw-Hill-


Page 39- “ International Business” by Charles W
A
Case Study
on:

“Who
Group Members:
Robin Kuriakose, Rini Sara Thomas,
Ronak Radhakrishnan, Sachin Varghese,
makes the
Sebastian Philip.

S-3 MBA,
Apple iPhone?”
Mar Athanasios College For Advanced
Studies, Thiruvalla. (MACFAST college)
Briefing of the Case Study:
• Apple started to make the
Macintosh computer in 1983 at
it’s iMac plant in Elk Grove,
California.
• By 2004, Apple turned to foreign
manufacturing.
• Its offshore manufacturing
reached its peak with the iconic
iPhone which was introduced in
2007.
• iPhone consists of hundreds of
parts, 90% of which are
manufactured abroad.
• Core activities like product
design, software engineering &
marketing are done in the US.
Manufacturing of the iPhone:
 Advanced semiconductors: Germany & Taiwan.
 Memory: Korea & Japan.
 Display panels & circuitry: Korea & Taiwan.
 Chip sets: Europe.
 Rare metals: Africa & Asia.
 Apple’s major subcontractor, a Taiwanese
multinational firm, “Foxconn” performs final
assembly in China.
2) In addition to Apple, who else benefits from
Apple ‘s decision to outsource assembly to
china ? Who are the potential loser here?

BENEFITS
 Factories providing iPhone are located close
to Foxconn’s assembly plant
 The employers and employees

LOSERS
 People of US are loosing job
 Poor working condition
 Low pay to workers
 Poor safety
 overtime
 Fix strong ethical policy when outsourcing
 Provide technical assistance in improving
working condition
 Cancelation of contract
Ans. I don’t think the outsourcing undertaken by apple is
a good thing for the American economy why because ,

 They provide jobs to foreign people while they could


have offered these jobs to Americans.
 There is recession these days and a people are seeking
for job ,so apple could make a difference.
 Some countries specialize for example ,memory,
chipsets etc. but more things could not be done in US.