Case study $3$: Apple INC.: Should it diversify its supply chain outside of

China? $($Product #: W$31842,$ Ivey Business School, University of Western

Ontario, Canada$)$

Discussion Questions:

$1.$ What demand and supply factors are impacting the market share of Apple in

the Chinese smartphone market? List demand and supply factors separately.

$2.$ Identify the market structure for Apple in the Chinese smartphone market.

Provide an economic rationale for your answer.

$3.$ Should Apple exit the Chinese smartphone market? Provide an economic

rationale for your answer and support your rationale with a diagrammatic

presentation of Apple$$s cost and demand conditions.

$4.$ Should Apple pursue a major shift in its supply chain location? If yes, which

country should it select for geographic diversification?