Apple Manufacturing Process for Ipads.

Aviad reed report. 10/12/13

Apple manufacturing process for iPads.

Introduction:

Apple is a company based in the United States although the majority of their manufacturing is done elsewhere.

I will be taking a look at the manufacturing process of apples iPad's that are manufactured by Foxconn, That is based in Shenzhen China a long way from the United States (CBSNEWS,2012). Some may say that Apple factory should be based in the USA although in the case that Apple may consider to reallocate their factories back to the United States this in effect would cause a high increase in price for their products and affect us, consumers, directly and cause a shocking loss in Apple's revenues.

Steven P. Jobs has strongly confirmed that to the president of the United States Barack Obama "these jobs aren't coming back" (New York Times, 2012).

Apple products are accessible to us on a daily basis whether it is via advertising, Internet pop-ups, or just by seeing your friend or a bystander with an iPhone, MacBook, iPad and other Apple products. The production line that Apple have in place is as follows, Apple gathers small microchips screens and other technical components that are necessary to create the iPad which are brought together at a factory in China and assembled, from China they are shipped over to various Apple stores and Apple licensed retailers or online shopping sites such as Amazon, eBay and other shops.

Why do you think the manufacturer uses this channel?

I find that Apple's use of a selective distribution channel that gives them the power to maintain high prices and the brand exclusivity and consumers loyalty by using this channel Apple can control the individual and selected distributors of their products.

Moreover I find that Apple manufacturers its products in China for obvious reason that manufacturing costs are a lot cheaper than if they would have chosen to manufacture the products in a different country.

Furthermore the manufacturing cost issue may bring about ethical questions in business enterprises that may choose to use the cheaper manufacturing option. Nowadays it is viewed that corporate social responsibility (CSR) is a big component of an enterprise image and marketing tool.

2. Does the manufacturer use other channels of distribution for this product? If so what are they and why are they used? If not, why not?

Apple does not have any other conventional distribution channels for several reasons.

Firstly, Apple has chosen not to expand their distribution channels because of its power. By using a selective distribution channel that grants the enterprise more or less full control of pricing and supply of the product.

Secondly, Apple has a name to upkeep and brand image to maintain that's why they have few intermediaries between their products and the consumers.

Finally, although Apple does not have a conventional secondary distribution channel they have created their own online distribution channels such as iTunes the App Store and even iBook this permits Apple to stay in control and direct contact with its consumers thereby Apple products have their own stores to buy music books and games this prevents any competitors that may want to sell their product to consumers by opening in this channel Apple has gained the power supply the customer with the above (Jobber and Chadwick, 2013, p. 635)

3. In what way do you think the distribution channel you first traced adds value to the product?

I find that the selective distribution channel that Apple has chosen with their iPads has not only added to the value and price of the product but also created a certain prestige that someone may gain by purchasing an iPad. Figures of sales fried pads via different distributors can be seen in appendix 1 overall Apple product distribution figures can be seen in appendix 2. These figures show that consumers prefer to purchase iPads directly from the Apple shop although there are a few more distributors out there.

Although Apple does allow few distributors to sell their products they still treat consumers that may have purchased their product elsewhere and not directly from an Apple store as if they have purchased it from the store itself this in fact is a motivating tool that Apple use to maintain the customers.

The personal channel that Apple use with its consumers that no matter where you purchase an iPad if it is from the Internet or an Apple Store or any various licensed Apple distributor you can walk-in to any Apple Store across the globe and receive help