Introduction

• Apple, based in California, is the largest publicly owned company in terms of market capitalization in 2022.

• Apple was founded in 1976 by Steve Jobs, Steve Wozniak & Ronald Wayne.

• Apple designs, produces & sells a line of personal computers, mobile phones, portable digital media devices,
wearables, software & related accessories.

• The firm sells internationally in 16 countries through a mix of direct sales, online sales, retailers & resellers.

• Apple is responsible for the first line of computers, portable music players & reinventing the phone & tablet.

• Employing over 2 million people, Apple has a cash reserve of over 60 Bn $, comparable to the overall value of
some giants.

• With the tagline of Think Different, Apple has always reinvented the wheel with its technological innovations.
 Apple vs Walmart
Apple, leading global brand in the technology sector & Walmart, largest global retailer by revenue are both category killers
in their respective spaces. Their focus on logistics & their ability to create and manage a fully integrated supply chain from
demand creation through demand management sets them apart from competition.
PRODUCT PORTFOLIO
Think Different Save Money, Live Better
Annual Revenue Market Cap Margin

138 Bn $ 2.6 Tn $ 60 %

559 Bn $ 406 Bn $ 25 %

Similarities Differences

Tracking via product serial code Tracking via RFID

 Highly integrated global supply chain Supplier storage Hub & Spoke model
 Robust logistics & reverse logistics systems Costly durable products Cheaper perishable products
 Responsive supply chain Premium over competitors Match competitors prices with EDLP
 Concierge in respective federated supply chains Very less variety amongst products High no. of SKUs
 No need of middlemen
 Complete transparency & control
 Rapid pace of innovation required to stay competitive
 Good after-sales service
 Supply Chain Implications

Stricter Labour Laws Maturity in Technology Market

 Lower flexibility in demand changes  Maturity in phone, tablet &
laptop markets

Global Supply Shock

 Complete rupture of supply chains Government Regulations
such as COVID-19 pandemic  Excise & Tax Regulations

Changing Tastes & Preferences Decreasing Product Life Cycle

 Changing brand loyalty  Lower shelf life, faster product
 Increased competition from Android development

Threat of increasing bargaining

Strong Leadership
power of vendors  Maintain strategically strong
 Collusion by vendors to undermine
leadership
Apple
Apple’s iPhone supply chain- Differentiation from competitors
Centralized R&D
 Limited product Manufacturing(Foxconn)
 Focus on future technology  Economies of Scale
 Labour intensive
Supplier  Complex quality control
 Exclusive capacity agreement  Secrecy of assembly process
 Single Sourcing  Individual testing of components
 Continuous updates to the seller  Flexibility in production

Logistics
Warehousing
 Direct delivery for online user
 Low inventory
 3-PL logistics- FedEx, UPS
 Data sync warehouse with owned
 Use of air freight- short lead time
stores
 Close management- Plain boxes
 Supplier keeps pipeline inventory
 Fast Inventory turnover ratio Reverse Logistics
 Easy return policy
 Central warehouse
 Increased customer satisfaction
 Recycle & reuse program
 Challenges that Apple will face in the future

Control over manufacturers New Product Development

Tight control over supplier’s production • Development of the iPhone series seems to be
decreases their profit margin, thus saturated, less innovation.
decreasing supplier’s interest. • Face problem of plagiarism of ideas from
other competitors
• more attention on obtaining relevant patents

Risky sourcing method Leadership challenge

Single sourcing methods making Substitution of Steve Jobs by Tim cook

has made investors skeptical about the
supplies of particular components risky
performance, way of management
leading to delay of production.
and daily operations, and future.

Ethics issues
Ramping up production in a shorter period of time can create volatility in the employment of labor.
Subcontracting might lead to costly temporary hiring and firing can create ethical issues about unfair treatment & loss of brand
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 Recommendations
 Apple should continue to hold BXE’s fund portfolio
• Loyal Customer base
• Brand reputation

 Continue building an efficient Supply Chain-Not easy to beat for a competitor

• Real-time operations provides no room for error & flexibility
• Upside is prepared for worst- Only buyer for the product
• Possibility of last-minute changes to the design or air freight
• High control over manufacturers ensures quality

 Further investigation of iPhone Series

• Examine uniqueness of iPhone
• Ability to capture public attention through new inspiring product

 Trust in the leadership of Tim Cook

THANK YOU