Operations and Supply Chain Management The Core

Memory—made by Toshiba and SK Hynix, $33.00
RF power amplifier—made by Broadcom, $16.60
User interface integrated circuits—made by Cirrus Logic, $10.00
Sensors—made by Bosch, ALPS, AMS, and ST Microelectronics, $2.35
TrueDepth sensing components—made by ST Microelectronics and Texas
Instruments, $16.70
Bluetooth module—made by Murata Manufacturing, $7.35
Battery—made by Sunwoda Electronics, $6.00
Touchscreen display—made by Samsung, $110.00
Rear enclosure—many manufacturers, $61.00
Power supply, headset—many manufacturers, $12.00
This chapter is about how Apple coordinates the supply of these parts so
that it can build the iPhone X on its assembly lines. Many of the components
are made in manufacturing plants in China, India, and Taiwan, so coordinating
the supply to the assembly plants in China is important to Apple’s success.
Think about it, if even a single component is not available at some point in
time, Apple cannot build an iPhone. So precise coordination with all its suppliers
is needed. Material requirements planning, the topic of this chapter, is key
to this coordination.
Estimates from many sources are that the components in the bill-of-materials
cost about $370 for a phone that is sold for $1,000. But this is only the start of the
expenses that Apple incurs to sell and support the iPhone X. Other costs relate to
the development of the software in the phone, and the support of the Web sites
needed to back up data and distribute apps for the phones. Great operations and
supply chain management is a major driver of Apple’s success.
©Oleksiy Maksymenko/imageBROKER/REX/Shutterstock
Source: IHS Market. http://ihsmarket.com