Job's death will not affect the sales of Apple, Micheal Jackson last album and his songs sold faster after the pop singer died. The vision and innovation with principles are there for the company to carry on.
If one day Apple misses forecast by $1 billion but vendors were expecting it to miss by $6 billion, what should they do with the extra part, extra manufacturing space and wasted resources?
@Bolaji, Just curious to know if these parts are specific to Apple. How much flexibility these parts manufacturers have to supply the same parts to different phone manufacturers? For example can LCD supplies meant for Apple be reused by Samsung ?
"Apple has been known for years to do known things in a completely different and better ways". I think this is the spirit behind this company from its foundation. Ronald Wayne, who designed the logo for the company said, Steve Jobs and Steve Wozniak were like the "whirlwind" and he cannot really fly with them, so he bowed out of the business by selling his 10% share for a price of $1,500 which should have been equivalent to $35 billion dollars today. Apple is solidly established on quality, new approach and a stormy drive. That is why the company was able to invest the entire world.
Well! what effect do you think the passing away of Steve Jobs will have on the company and the sales? Would the sale of iphone 4S be impacted because of this?
@Nemos, The electronics supply chain operates as a high-velocity engine with everything carefully calibrated. Supplies must reach the manufacturer at specific times; any delays would result in some level of chaos. In this system, the ability to predict as closely as possible how much materials you need, where and when is critical to efficiency. Over the years, the components makers have also learned to produce just enough so as not to end up with inventory nobody wants to buy.
When a company provides an inaccurate forecast most parts makers can usually bend their production system and raw material procurement to meet the new demand or cut back as necessary. This becomes extremely difficult if the anticipated forecast overshoots by billions of dollars. I can bet most suppliers don't rely on Apple's forecast completely, knowing it would probably miss on the upside. The question is by how much. Push this down the supply chain and you have vendors missing shipments, raw material pricing being impacted and contractors not knowing exactly how many assemblers to hire for the holiday season.
That's the headache Apple is creating -- so far nobody is complaining loudly because it's all on the upside. If one day Apple misses forecast by $1 billion but vendors were expecting it to miss by $6 billion, what should they do with the extra part, extra manufacturing space and wasted resources?
@anandvy, Apple has been known for years to do known things in a completely different and better ways. They look from the user point of view and their implementation is always more user friendly, more wholesome. At the time of iPhone 1 global market was saturated with cell phones from Nokia, Motorola and RIM and look what happened. Now Android has all and look what it will happen.
I'm not surprised that Apple came out with the Iphone 4S, instead of an Iphone 5. They did this with the Iphone 3. They make some minor improvements, lower the prices on their previous phones, and they have an instant sales increase. The Iphone 4S is not the phone people were expecting to be unveiled. I'm sure this has to do with continuing on their profit margin and buying time to develop a new model for the future.
As for Apple's misses in their forecasting, there is definitely an issue at hand, though they might be low balling their own numbers. It seems like any analyst who questions Apple's business plan is afraid to announce it publicly for possible repercussions.
The race is not over as we will wait one more year for technological breakthroughs with model 5.
@Parser, what technological breakthrough you are expecting ? Apple no longer has a leading edge, its cloud service is even behind (Google's mobile operating system) Android. Moreover google is already providing NFC enabled handsets. So it would be hard for Apple to maintain its technological edge over android phones.
So never keep all your eggs in the same basket, The battle still exists.....
@Nemos, I totally agree with you. Battle still exists. The new Apple iPhone has definitely failed to wow the investors. Asian smartphone makers have a chance to exploit a rare letdown from Apple. Infact investors now expect Android phones to give tough competition to Apple. That is why shares of Shares of Samsung Electronics , HTC and LG Electronics , who all make phones using Google Inc.'s Android operating system, jumped after the iPhone release.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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