Apple iPhone model changes and planning by case makers

An article in bloombergbusinessweek (Oct 17,2011) describes pressures faced by iPhone case manufacturers, a $ 450 million market, when new iPhones models are announced by Apple.  Rely on leaks and rumors regarding the new phone and invest in tools in advance, to be first on the market ? Or wait for the announcement ready with designs, but execute as quickly as possible but with compelling colors and features, risking launch delays ? Given this supply chain conundrum,  how should risk be shared across the case supply chain? Are the 65% margins that case makers receive the reward for assuming supply risk and the cost to be ready when the new iPhone model arrives ? Should Apple share design outlines with case manufacturers or is its current no sharing approach optimal  ?

Advertisements

About aviyer2010

Professor
This entry was posted in Collaboration, Global Contexts, Service Operations, 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