Iphone 5c Case Study

1609 Words 7 Pages
ECONOMIC ASSESSMENT
8
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.
3)
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
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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 their electronic components forecast for 2016 (Pool e, 2015). This group is predicting growth to be flat for 2016 in line with the global economy (P oole, 2015). However, hope is on the horizon due to the growing area of the Internet of Things w ith predictions of billions of connected devices being in operation in the next few years (P oole, 2015). If the ecsn is able to confidently make this prediction, Apple may have a better chanc e at keeping supply costs low.
4)
Effects of labor and wages on the organization’s in ternational and domestic operations
ECONOMIC ASSESSMENT
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Apple Inc. relies on sole-sourced outsourcing
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In 2013, the United States made substantial progres s with its trading partners towards concluding the Trans-Pacific Partnership (TPP) nego tiations that is expected to be an ambitious agreement in the world’s fastest growing region (WT
O, 2014, p. 4). This 12 country Asia-
Pacific trade and investment agreement will advance U.S. economic interests and expand U.S. exports while creating a platform for economic inte gration across the Asia-Pacific region (WTO,
2014, 12). “The TPP will address new and emerging trade issues and 21st-century challenges,
ECONOMIC ASSESSMENT
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including issues related to market access, non-tari ff barriers, intellectual property,

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