More supply chain problems for Apple

Source: http://economictimes.indiatimes.com/tech/hardware/iphone-5-apple-cuts-memory-chip-order-to-samsung-for-new-phone/articleshow/16292922.cms

In response to Yahel Jarus Hakak’s blog post regarding Apple’s suppliers.
The article that Yahel Jarus Hakak wrote his blog post about discusses Apple shifting away from its main supplier, Samsung, towards LG and AUO. Samsung also happens to be Apples biggest competitor and this may be the reason for the modification of Apples supply chain. The consequences of this shift have been shortages and long waits resulting in frustrated customers. Clearly, Apple’s new suppliers are not able to keep up with demand as well as Samsung did.

After reading Yahel Jarus Hakak’s blog post, I have to say that I completely agree with him. Apple is solely seeking other suppliers because they simply do not want to be dependant on their competitor. I do not think Apple is making the right move by shifting away from Samsung; they are jeopardizing their supply chain and are putting customers wants aside. In the long run, dissatisfied customers will switch over to other companies such as Samsung, so in a way they are helping their competition. Furthermore, after discussing the importance of having a strong supply chain, in class, I think Apple should focus more attention to this matter.

Article can be read here.

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