Apple's History Essay
When examining Apple’s supply chain strategy, there are many different aspects. Each of their products has a different supply chain strategy. Apple’s successful supply-chain characteristics have led to apple topping AMR’s list of the top 25 supply chains (Apple's Supply Chaing Tops AMR Ranking, 2010) These different strategies combined have helped Apple succeed and by record numbers.
With the production of Apple’s IPhone and IPad, Apple has returned to a strategy of vertical integration. Vertical integration is developing the ability to produce goods or services previously purchased, or to actually purchase a supplier or distributer (Heizer & Render, 2011). When Apple developed their own A4 processor for the IPad they were practicing the vertical integration supply-chain strategy. Prior to Apple’s development of the A4 processor, Apple purchased their processors from companies including Samsung and Intel. In addition to the processors, Apple also developed the operating system to be used in the iPad. Vertical integration allowed Apple to have full control over their iPad and iPhones.
Apple’s use of vertical integration has allowed the organization many successes. The first of these was performance, since Apple not only developed the device but also the processors and operating system (Lyons, 2010). This allowed Apple to increase performance on the device and to fix