iPad Sales Growth and Global Supply Chain Impact

iSuppli (weblink http://www.macrumors.com/2010/07/20/isuppli-boosts-ipad-sales-estimates-through-2012-to-nearly-100-million/) suggests a three year demand for iPads of 100 million units.  Even from the start of the year 2010 through the end, for a product whose category did not exist before its launch, the estimate is close to 10 million units. How should Apple satisfy this demand ? The article cites increased production capacity rampup of “LCD panels and NAND flash” by suppliers. It also describes the iPad as the “Tickle Me Elmo” of the 2010 holiday season.  Imagine being faced by such a demand surge, how should Apple respond ? Is it a good idea to increase prices to soften demand ? Should large capacity commitments and risk be taken by the supply chain to chase demand ? Imagining how to harness such demand surges changes the supply chain’s role to be a key player in driving top line growth – from its distant past as a cost driver alone. What would you suggest for Apple’s global supply chain ?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s