THE DELL PCs, iPHONES & iPADs SOLD IN USA ARE ANYTHING BUT AMERICAN!

1. THE DELL PCs, iPHONES & iPADs
SOLD IN USA ARE ANYTHING BUT
AMERICAN!

2. GROUP NO-8
PRANAY DEEP - 17202243
RUDRA PRASAD GHOSH - 17202247
PRIYADARSHINI DAS - 17202244
PRIYADARSHINI MOHANTY - 17202245
R M MRITUNJAY - 17202246

3. APPLE: COMPANY PROFILE
• Established on April 1,1976 by Steve Jobs,Steve Wozniak,Ronald Wayne.
Industry:
• Computer Hardware,Software
• Consumer electronics
• Digital distribution
Key people:
CEO: Tim Cook ;Chairman: A.D.Levinsion
• Total Revenue:US $ 215.639 billion(FY-2016)
• Net Income:US $ 45.687 billion(FY-2016)
• Total employee: 1,16,000(FY-2016)
• No of locations: 498 Retail stores worldwide

4. CURRENT APPLE PRODUCTS
• Desktop: Mac Mini,iMac,MacPro
• Laptops: MacBook, MacBook Air, MacBook Pro
• iPhone
• iPad
• iPod: iPod Classic, iPod Nano, iPod Shuffle, iPod Touch
• Softwares: iLife, iTunes, iWork

5. iRevolution

6. APPLE - DIFFERENTIATION STRATEGY
• Unique feature and characteristics
• Commands premium price
• High customer service
• Superior quality
• Prestige
• Rapid Innovation
• Retail strategy
• Customer loyalty

7. APPLE - OUTSOURCING
• Battery : SAMSUNG(SOUTH KOREA), HUIZHOU DESAY(CHINA),
FLEX(INDIA)
• Camera : SONY(JAPAN) , face-time camera chip by TMSC(TAIWAN)
• Display : LG, SAMSUNG, SHARP
• Flash Memory : TOSHIBA, SAMSUNG
• Chipset and processor : SAMSUNG, TSMC, GLOBAL FOUNDRIES
• Audio Chipset & Codec : CIRRUS LOGIC(US)
• Baseband Processor : QUALCOMM
• Fingerprint sensor authentication : AUTHENTIC makes it in CHINA but
outsources it to TAIWAN
• Main chasis assembly : FOXCONN & PEGATRON (CHINA)
• Screen & Glass : Corning(Gorilla Glass) in USA
• Touchscreen Controller : BROADCOM in USA(outsourced for manufacturing)

8. APPLE - SUPPLY CHAIN MANAGEMENT
Apple as a company ranked 1st for consecutive 3 years for
best supply chain practices by AMR Research.
• SUPPLIER
• MANUFACTURER
• WAREHOUSES
• STORES
• CUSTOMER

9. APPLE - SUPPLY CHAIN MAP

10. APPLE - MATERIAL SUPPLIER
• SAMSUNG : The Singapore facility manufactures CPU & Video processing
chips
• INFINEON : The Singapore facility manufactures Baseband communication
Hardware
• PRIMAX ELECTRONICS : The Taiwan facility manufactures Digital Camera
modules
• FOXCONN INTERNATIONAL : The Taiwan facility manufactures internal
circuitry
• ENTERY INDUSTRIAL : The Taiwan facility manufactures connectors
• CAMBRIDGE SILICON : The Taiwan facility manufactures bluetooth chipsets
• UNICORN TECHNOLOGY : The Taiwan facility manufactures printed circuit
boards

11. Contd.
• CATCHER TECHNOLOGY : The Taiwan facility manufactures stainless metal
casings
• BROADCOMM : The US facility builds touch screen controllers
• MARVELL : The US facility builds 802.11 specific parts
CHINA facility assembles the hardware, holds inventory and handles the
pick,pack & ship steps of the fulfillment process.
 CHINA becomes the 'Assembly Hub of Apple'
 Components of iPhone are almost entirely Asian.
 Apple contributed design & software and integrated the innovations of others.

12. Benefits APPLE got from it's Supply Chain
COST :
Reduced inventories
Reduced waste
Reduced total manufacturing costs
SERVICE :
Establishment of a collaborative framework
Near real time information flow

13. Manufacturing cost of some iPhone

14. APPLE iPHONE 7PLUS -AT A GLANCE

16. DELL : COMPANY PROFILE
Industry : Computer Hardware & Software
Products : Personal computers, Servers, Peripherals, Smartphones,
Televisions, Technical support services
Key people : Michael Dell(Founder, Chairman & CEO of Dell Technologies)
• With a market share of 15.9%, Dell was the 3rd largest PC vendor in the
world in the first quarter of 2017, after Lenovo and HP
• In the first quarter of 2016, Dell was the largest manufacturer of computer
monitors in the world, with a market share of 16.8%.
• Dell was the third largest employer and largest private employer in Austin,
Texas.Total no of employees : 1,01,800 (FY-2016)

17. CURRENT DELL PRODUCTS
• OptiPlex (office desktop computer systems),Dimension (home desktop
computer systems)
• Vostro (office/small business desktop and notebook systems)
• n Series (desktop and notebook computers shipped with Linux or FreeDOS
installed)
• Latitude (business-focused notebooks)
• PowerEdge (business servers),Force10 (network switches),PowerConnect
(network switches),Dell Compellent (storage area networks)
• EqualLogic (enterprise class iSCSI SANs),Dell Electronic Medical Records
Solutions (EMR)
• Dell's Home Office/Consumer class brands are focused on value,
performance, and expandability.
 These brands include:

18. Component supplier for DELL's PCs
• Monitor : Phillips,Nokia,Samsung,Sony,Acer (Europe and
Asia)
• PCBs : SCI, Celestica (Asia, Scotland and Eastern
Europe)
• Drives : Seagate,Maxtor,Western Digital (Asia, mainly
Singapore)
• Printers : Acer (Europe- mainly Barcelona)
• Box builds : Hon Hai/ Foxteq (Asia and Eastern Europe)
• Chassis : Hon Hai/ Foxteq (Asia and Ireland)

19. CAUSE BEHIND GLOBAL PRODUCTION
NETWORK
• DELL performs only final assembling in domestically
• Relies on outside supplier and contract manufacturers for
components, peripherals and PCBs
• Most components are cheaper to produce in other part of
the world and are thus imported
• Neither high-value nor very low-value parts have to be
made close to DELL's assembly plants
• Mid-level components - too expensive to ship by air - to
meet volatility in demand - to risk holding in inventory -
produced locally (but not always also)

20. VENDOR SHARE:INDIA PC MARKET,Q2,2013
HP 34.1%
DELL 11%
ACER 10.4%
LENEVO 9.3%
OTHERS 35.2%
TOTAL 100%

21. Top 5 vendors,worldwide PC shipments,2nd qtr
2013(preliminary)(unit ship)
VENDOR 2Q13
SHIPMENTS
2Q13 MARKET
SHARE
2Q12
SHIPMENTS
2Q12 MARKET
SHARE
2Q13/2Q12
GROWTH
LENEVO 12,619 16.7% 12,802 15.0% -1.4%
HP 12,378 16.4% 13,414 15.7% -7.7%
DELL 9,230 12.2% 9,633 11.3% -4.2%
ACER 6,226 8.2% 9,241 10.8% -32.6%
ASUS 4,590 6.1% 5820 6.8% -21.1%
OTHERS 30,589 40.4% 34,464 40.4% -11.2%
TOTAL 75,632 100% 85,374 100% -11.4%

23. WHY NOT DOMESTIC PRODUCTION FOR BOTH?
• Very low labour cost in asian countries
• Less skilled workforce in USA
• Labour union problem in USA
• Legal issues in USA
• Insufficient raw materials
• Reduce shipping cost
• Environmental factors

24. STRATEGY : APPLE VS DELL
APPLE DELL
Cool factor Direct to customer.
Entering market after they are
developed.
Just in time component inventories.
Distribution channel strategy. Customer Relationship Market.
Companies used highly educated
employees to sell their product.
Partnership with suppliers.

25. PRICE PROCESSING OF DELL PRODUCT
• Sum of the components, sub-assembles and labour of a
Dell machine might be around $200.
• Then they sell to a distributor for $300(this product could
pass through multiple distributor customers)
• Distributors then mark their price up accordingly with their
margins, which equals $375.
• Sell price to retail customer is probably around $750 at
50% gross margin.(assuming this only pass through one
distributor)

26. CONCLUSION
APPLE and DEll both have managed to be successful
with two different startegies because they have always
fulfilled the needs and expectation of their customers;
creating a strong relationship with them.
They sell their product where their customers expect to
find them and that is the key of a successful company.