Multiple suppliers for the new iPad’s components

An article in the Wall Street Journal (March 16,2012) describes a teardown of the new iPad – and shows multiple suppliers for memory chips and the high resolution display. Chips are provided by Qualcomm, Broadcom and Elpida, for example. Will the split of volumes across multiple suppliers increase Apple’s negotiating power over prices or decrease it given lower volumes for each supplier ? Is this a strategy to decrease supply risk (in response to the Japanese earthquake or Thai floods), and will it thus decrease average costs over these scenarios ? Given more suppliers, will you expect the components to be have more standard specifications, thus potentially impacting Apple’s competitiveness ?

About aviyer2010

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

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