Howdy! A Portland, OR native, I currently reside in the northern San Diego County area as a freelance writer. When I'm not sipping coffee, soaking up some rays and writing or playing guitar you can find me at the hot yoga studio.
This article will discuss why Apple outsources. Apple's lack of expertise in designing mobile phones results in having other manufacturers, like Samsung, make its phones.
It's not like Apple's competency in mobile phones cannot be outdone by anyone, but its position of dominance in the industry gives it a strong bargaining power, as the other manufacturers rely on the iPhone for sales.
Secondly, the company's current low stock price makes it easy for it to contract more employees to work on the iPhones and all those related devices.
As it already has skilled designers, engineers, and manufacturing staff, it doesn't have to hire the employees on an in-house basis.
Thirdly, it also manages to push the prices of its products down to win more customers.
So its entire business model, including sales to other manufacturers, is pretty much the same. It just happens to sell most of its products to a few companies.
Therefore, Apple has chosen to use manufacturing companies such as Foxconn because it has no other option.
The iPhone continues to be the biggest moneymaker for Apple; hence it has to treat its manufacturing partners well, whether it likes it or not.
Many reports are coming out from different workers who get frustrated with their jobs and even report their difficulties, but not all of them are malicious.
The top Apple customer service executive reported to Business Insider, "We get approached every day by people who are very upset with their job, by people who love their job, and there's no way to know which is which."
Even though Apple has reported a 70 percent drop in iPhone sales in the last quarter, most of its employees haven't noticed.
This is mainly because of the high amount of pressure the workers have to face. There are reports of employees working 60 hour weeks to get their job done.
The team working on the iPhone X is reportedly forced to work overtime hours. The production time for iPhone X has increased to the point where they have to start working early in the morning and stay up late in the night to finish the manufacturing line.
Apple also reportedly has to pay a fine for every minute employees are late to their work.
However, a lot of people are fooled by Apple's line that it is making jobs easier for other people, and those who are unhappy with their jobs are the ones making a fuss.
There's no denying that some of these negative stories exist and that these employees, and even CEO Tim Cook, have to face them, but the results of working in this country are hard to dispute.
Even if we don't accept the negative stories, many positives come from the outsourcing of jobs. Unlike other companies that rely on employees to get their products out, Apple has managed to hire top talent in the designing field.
In fact, one of the top designers in the iPhone, Avie Tevanian, has come to Apple from Apple's competitors.
Moreover, Apple is actually known for being a good boss to its employees, so the effects of these negative stories may not be a big deal for them.
To have a successful outsourcing production, there are a few things that you need to take into consideration. These factors are:
The workers you hire for your outsourcing production will be extremely knowledgeable about your product, especially if they have a background in the production of that product.
They will understand how the production process works and why the production line is set up the way it is so that they can do it with ease.
Outsourcing experts will also save you some time and effort. Let’s put it this way – if you hire someone with no experience at all, you will have to spend more time and money into training them.
We all know training takes time. Thus, they will also need guidance before they can properly familiarize what you need them to do.
In outsourcing, you are sure that they have the skills and knowledge you need for the job, and you can also save some time knowing that they can accomplish the task at a set deadline. With this, there will be no bottlenecks in your business, and you can easily move forward with the next task you need to get done.
If you decide to outsource your production, make sure that you are capable of producing the best products you can.
This means that you need to have different products in your production, with different characteristics and specifications.
For example, if you are making a music player, you need to make a different music player than if you are making an iPhone.
If you are making an iPhone, you need to make a different music player than if you are making a computer.
If you do not have a few different products that you can use, it will be very difficult for you to have a successful outsourcing production.
The final factor that will be important is your customer consideration.
Make sure that you are taking into consideration the preferences of the people you will be outsourcing your production to.
This means that you must be prepared to give them extra services that they demand, such as on-time delivery, if possible.
Do not be short-sighted with the products you are producing, otherwise, you will end up losing customers because they don’t want to wait.
Keep in mind that when putting up a business, your customers are your bread and butter – they are the reason why your business is flourishing as you created your business to serve them in the first place. Thus, always value their demands and request, and make sure they are your number one priority.
Many things – all positive – have come out with customer loyalty coming into play. Keep them close, and make sure to provide them the best possible product and service you can give.
While you must take all of the considerations into account when making your decision to outsource production, if you have a strong desire to outsource your products, it will be worth the effort.
As stated before, this is an extremely cost-effective way to meet your needs, but you have to be aware of the potential downsides so that you can avoid them.
However, if you put in the effort, you will find that the upsides outweigh the downsides and you will end up with highly successful outsourcing production.
If you are going through a bad time, outsourcing production is one way that you can have success.
Don’t be afraid to start outsourcing production, as it is an incredibly cost-effective and fast way to meet your customer's needs.