Apple designs and markets the iPhone in the US but manufactures 90% of its parts abroad. Core iPhone components like semiconductors come from Germany, Taiwan, Korea and Japan while rare metals are sourced from Africa and Asia. Foxconn, a Taiwanese company, performs the final iPhone assembly in China using these imported parts. While factories and employers in Asia benefit, American jobs are lost due to Apple's offshore outsourcing.

1. A
Case Study
on:
“Who
makes the
Apple iPhone?”
Group Members:
Robin Kuriakose, Rini Sara Thomas,
Ronak Radhakrishnan, Sachin Varghese,
Sebastian Philip.
S-3 MBA,
Mar Athanasios College For Advanced
Studies, Thiruvalla. (MACFAST college)
Page39-“InternationalBusiness”byCharlesW
Hill&ArunK.Jain,10thedition,McGraw-Hill-
NewDelhi.

2. Briefing of the Case Study:
• Apple started to make the
Macintosh computer in 1983 at
it’s iMac plant in Elk Grove,
California.
• By 2004, Apple turned to foreign
manufacturing.
• Its offshore manufacturing
reached its peak with the iconic
iPhone which was introduced in
2007.
• iPhone consists of hundreds of
parts, 90% of which are
manufactured abroad.
• Core activities like product
design, software engineering &
marketing are done in the US.

3. Manufacturing of the iPhone:
Advanced semiconductors: Germany & Taiwan.
Memory: Korea & Japan.
Display panels & circuitry: Korea & Taiwan.
Chip sets: Europe.
Rare metals: Africa & Asia.
Apple’s major subcontractor, a Taiwanese
multinational firm, “Foxconn” performs final
assembly in China.

7. 2) In addition to Apple, who else benefits from
Apple ‘s decision to outsource assembly to
china ? Who are the potential loser here?
BENEFITS
 Factories providing iPhone are located close
to Foxconn’s assembly plant
 The employers and employees
LOSERS
 People of US are loosing job

8.  Poor working condition
 Low pay to workers
 Poor safety
 overtime

9.  Fix strong ethical policy when outsourcing
 Provide technical assistance in improving
working condition
 Cancelation of contract

10. Ans. I don’t think the outsourcing undertaken by apple is
a good thing for the American economy why because ,
 They provide jobs to foreign people while they could
have offered these jobs to Americans.
 There is recession these days and a people are seeking
for job ,so apple could make a difference.
 Some countries specialize for example ,memory,
chipsets etc. but more things could not be done in US.