Ever wonder how Apple make such high profit on a device like the iPad for example, where competing companies like HP and Amazon are said to be making a loss of their sales? What do they seem to be doing differently?
Apple’s CEO Tim Cook seems to be the reason behind its success, as he has spent the last decade working hard into making Apple productivity functioning smoothly. This has been revealed lately by Bloomberg in secrets of Apple’s supply chains.
There are a number of interesting things to be found in this report about the company’s impressive operations. It states that at one point Apple spent $50 million dollars to buy available air freight space right before the holidays to make sure that its iMacs would ship on time.
Another story that was mentioned was the time Johnny Ive came up with the idea from the green LED light in Apple’s new MacBook line. They could only get this at the time by buying the most expensive lasers. Apple went all out and bought LEDs for $250,000. This was also to make sure that they will be the only ones using them as they have them all.
Quoted from the article:
“Apple has built a closed ecosystem where it exerts control over nearly every piece of the supply chain, from design to retail store. Because of its volume—and its occasional ruthlessness—Apple gets big discounts on parts, manufacturing capacity, and air freight. “Operations expertise is as big an asset for Apple as product innovation or marketing,” says Mike Fawkes, the former supply-chain chief at Hewlett-Packard (HPQ) and now a venture capitalist with VantagePoint Capital Partners. “They’ve taken operational excellence to a level never seen before.”
And so this is why Apple is able to hold most of the mobile market’s profits, and this is why people think that Apple will successeed in the TV market as it will use the same game in that area too.