Tina talked about that Apple chooses to manufacture overseas in her blog. This phenomenon is now a common strategy for many firms. I agree with what she said that Apple did that because it is cheaper and easier to find workforce.

In addition to cost minimization, I believe firms also take the advantages and disadvantages of overseas manufacturing into consideration. The biggest advantage is that it has lower labour cost. However, a disadvantage is oversea manufacture takes longer processing time. Comparing Apple and Samsung, Apple spends more time on shipping. Yet, Samsung has a direct selling model since its factory is close to its company. Samsung will be able to make any adjustments on production instantaneously and more accurately control it inventory. For example, Apple was running out of gold Iphone 5s for about two months. We can imagine how much Apple has lost for being short in inventory. If Apple is not manufacturing overseas, the company hopefully can change the amount of different colors of Iphone 5s produced. From a society angle, firms choosing to manufacture in other countries negatively affects its local country’s employment rate.

Source: https://blogs.ubc.ca/tinazhang/2013/09/18/why-does-apple-choose-to-manufacture-its-products-in-asia/