http://www.businessweek.com/magazine/apples-supplychain-secret-hoard-lasers-11032011.html
Apple’s secret to market supremacy? Mastering the art of the supply chain. This integral, but often overlooked aspect of a company can easily distinguish the losing companies from the winning ones.
http://logistics.about.com/b/2010/08/18/supply-chain-abuses-alleged-at-apple.htm
By micro managing almost every aspect of their supply chain, Apple has been able to increase their gross margins to almost 40%, when the industry average is around 10-20%. Analysts credit this success because of the sheer volume that Apple demands of their suppliers, and their ruthlessness. Apple designers will spend weeks on end in hotels just to be close to their suppliers and work on things such as tooling equipment. Although, the relationship that Apple has with its suppliers can be a love-hate one. The high volumes are positive for suppliers, but the requirements that Apple can demand are very specific, which can lead to deflated prices and lower profit margins. These circumstances have even caused some firms to not do business with Apple whatsoever.
Even when it seems like Apple’s operations can’t get any better, they decide to nearly double their capital expenditures on their supply chain to $7.1 billion. Not only is Apple dominating their external functions such as marketing or their physical products, but their changing the way companies operate as well.