Question

What are the advantages and disadvantages to Apple of outsourcing its production to factories in China?

Answer 1

The superior response, high scale, flexibility, diligence, and access to industrial skills are Apple's advantages when it outsources manufacturing to China's factories. The outstanding speed and flexibility of factories in China to accommodate the request for change is an example of the superior response to Apple 's needs during assembly. It takes only days compared to months for the US to hire qualified industrial engineers. The supply factories near Apple's Chinese factory have a positive impact on the whole supply chain. Cost differential and low-cost manual labor can help differentiate Apple or reduce its cost structure.

Quality control, poor materials, language issues and mainly Apple's critiques of not supporting jobs in its home nation could include disadvantages