Economic Assessment Of Apple Inc. Essay
The latest technology buzz around our products invo lves the privacy of customer data. In a recent terrorist case the FBI failed to enlist Ap ple’s help to crack the security of an iPhone 5C and instead used an “outside party” to unlock it (C overt, 2016). We take our customer’s privacy very seriously and if there are companies that have the ability to hack into our devices, this will significantly impact our technology costs and futur e initiatives.
Economies of scale and reduction of costs
Because Apple Inc. currently obtains components fro m single or limited sources, the company is subject to significant supply and pricin g risks (Apple Inc., 2015, p. 10). Many components are subject to industry-wide shortages a nd significant commodity pricing fluctuations (Apple Inc., 2015, p. 10). “The compa ny and other participants in the markets for mobile communication and media devices and personal computers also compete for various components with other industries that have experien ced increased demand for their products
(Apple Inc., 2015, p. 10). Continued availability of components at acceptable prices, or at all, may be affected for any number of reasons, includin g if those suppliers decide to concentrate on the production of common components instead of comp onents customized to meet Apple’s requirements (Apple Inc., 2015, p. 10).
Near the end of 2015, the UK ecsn – Electronic Comp onents Supply Network released…