Question: Which value chain activities does Apple outsource? Which value chain activities does it perform internally? Do you think Apple's outsourcing decisions are justified? Explain. Value

Which value chain activities does Apple outsource? Which value chain activities does it perform internally? Do you think Apple's outsourcing decisions are justified? Explain.

Which value chain activities does AppleWhich value chain activities does Apple

Value added in value chains of iPhone 4 and iPad, by location and activity: 2010 Activity Location/ Company iPhone 4 (2010) 16 GB Wi-Fi iPad (2010) Share of Share of Amount/Cost "Retail Amount/Cost "Retail $199 $499 ($350) $549 100.0 5499 1000 NA 0.0 $75 15.0 NA Worldwide Worldwide $549 100.0 $424 85.0 Value Capture US Apple US suppliers Japan $401 $334 $321 $13 73.0 60.8 58.5 2.4 $238 $162 $150 $12 47.7 32.5 30.1 2.4 0 $3 0.5 $7 1.4 South Korea Price to consumer Carrier subsidy "Retail price Distribution and retail (Gross value) Wholesale price received by Apple) Total value capture U.S. Total Design/marketing Manufacturing of components Manufacturing of components Manufacturing of components Manufacturing of components Manufacturing of components Manufacturing of components Total direct labor Labor to manufacture components Labor for components and for assembly Non-labor cost of materials for inputs $26 4.7 $34 6.8 Taiwan $3 0.5 $7 1.4 EU. $6 1.1 $1 0.2 Unidentified $29 5.3 $27 5.4 Direct Labor Unidentified $29 $19 5.3 3.5 $33 $25 6.6 5.0 China $10 1.8 $8 1.6 Worldwide $120 21.9 $154 30.9 Apple iPhone 4 teardown 1668 GSM version, cost breakdown, CONTRIBUTING COMPONENT MANUFACTURERS Component/Cost: Manufacturer/Origin: SAMSUNG Infineon/re Applications Sayworld Salartrariraaiy: Dialog Semiconductores Texas Instruments/United States Cirrus Logistes A Semiconductor Baseband/1025 Bluetooth 5-6/8.00 Baseband6.20 Rash memer/250 Al & g/225 Power I.SI Audio/ -Touchscreencontro 0:30 E-compass/0.70 Display Mechanical select mechanical Battery 6.00 Other/25.9 Total components: 178.00 TOTAL COSTS Average sale price $560.00+ APPLE'S SLICE: 368.00 Manufacturing by Foxcon (Shenzhen, Chinaj200 Fon's margin: 200

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