Storage And Distribution | iPhone Commodity Chain (2024)

After workers craft the many pieces of the iPhone into the finished product it is “shipped to distribution centers around the world, including Australia, China, the Czech Republic, Japan, Singapore, the U.K. and the U.S.” (The IPhone’s Secret Flights). Apple has warehouses scattered around the globe where the phones are stored in order to make the distribution process easier for them and more convenient for customers. Thanks to the lack of weight of the phones, transportation is made cheap and easy. Many other products that are heavier and bulkier than an iPhone have to be shipped via massive ships across the ocean. Due to the small size and weight of the iPhone, they can be shipped through the air in a cost effective manner since thousands of phones can be stored in the plane at once.

This aspect of the iPhone’s network of labor and production processes does not have much of an impact on the world. The distribution and storage of these iPhones does create jobs, which helps the global economy. One negative side of the mass distribution of this product is that the boats, trucks, and planes used to transport the iPhones do create atmospheric pollution.

Storage And Distribution | iPhone Commodity Chain (1)

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Storage And Distribution | iPhone Commodity Chain (2024)

FAQs

How does Apple distribute their iPhones? ›

Apple implement multiple distribution channels including direct and semi-direct, company-owned stores and other authorised parties to distribute their products and services to their target customers and consumers.

Who distributes iPhones? ›

– Foxconn sells the finished iPhones to Apple who then resells them to customers around the world.

What supply chain issues does Apple have? ›

Issues and controversies surrounding Apple's supply chain

Reports of long working hours, low wages, and poor working conditions have tarnished Apple's reputation and raised questions about its commitment to ethical practices. Another issue is the use of conflict minerals in Apple's supply chain.

How are iPhones distributed around the world? ›

Apple has warehouses scattered around the globe where the phones are stored in order to make the distribution process easier for them and more convenient for customers. Thanks to the lack of weight of the phones, transportation is made cheap and easy. Many other products that are heavier and bulkier than an iPhone have ...

What is the Apple iPhone supply chain? ›

The Apple supply chain is a complex and intricate system that is responsible for the production and distribution of Apple products. It is a global network of suppliers, manufacturers, and distributors that work together to ensure that Apple products are delivered to customers in a timely and efficient manner.

What is Apple's distribution process? ›

Apple works with global suppliers to acquire the necessary components to manufacture its products. These components are then transported to Apple's manufacturing facilities, where they are used to assemble finalized products. Once products have been assembled, they are sent to Apple's distribution centers.

Does Apple have their own supply chain? ›

Apple products are made with revolutionary precision to perform exactly as promised. And because customers all over the world eagerly await that experience, we built a supply chain that's equally revolutionary. Join these teams and continue to innovate on an immense scale.

Who is Apple's supply chain supplier? ›

TSMC, Foxconn, Advanced Semiconductor Engineering (ASE), Pegatron, Compal, Wistron, and YAGEO remain part of Apple's supply chain. Apple's 2023 fiscal year supply chain list covers approximately 98% of the materials, manufacturing, and assembly related to Apple products globally.

Where are iPhones stored? ›

When all iPhones are completed in assembling process and packaged, they will wait to be shipped to the US Apple warehouse, located in Elk Grove, California, and some other distribution centers located around the world, including China, the Czech Republic, Japan, Singapore and the U.K.

Is Apple's supply chain good? ›

Surprisingly, IT research firm Gartner ranks Apple Supply Chain as the best supply chain in the world for 3 years in a row. Without a doubt, Apple Inc is the world leader in Innovation, Branding and Software Ecosystem.

How many suppliers for iPhone? ›

How Many Suppliers Does Apple Have? Apple has hundreds of suppliers, with its most recent supply list documenting the 200 that make up 98% of its procurement spend.

Where are the materials for an iPhone sourced? ›

An iPhone is not only assembled in China, but it starts in that country at a much earlier stage and much deeper part of the earth. Ninety percent of rare earth minerals, naturally occurring solids whose combination comprises essential iPhone parts, are mined in China, notably in Mongolia.

What are Apple's distribution channels? ›

Apple employs variety of indirect distribution channels that includes: Third-party cellular network carriers. Retailers, wholesalers. Merchants.

Who owns the iPhone? ›

The iPhone is a line of smartphones produced by Apple that use Apple's own iOS mobile operating system. The first-generation iPhone was announced by then–Apple CEO Steve Jobs on January 9, 2007. Since then, Apple has annually released new iPhone models and iOS updates.

How many iPhones are made a day? ›

The world's most valuable company Apple at one point in time had their main supplier making 500,000 of its cell phones per day at one mega factory in China. Then last year, COVID-19 lockdowns and protests of harsh working conditions caused major disruptions at the factory.

Does Apple use direct distribution? ›

Some of the companies that use direct distribution include Amway, Apple, Avon, Bowflex, Charles Schwab, L.L. Bean, Mary Kay, Peloton, and Walmart.

What is Apple's selective distribution strategy? ›

Selective Distribution: Apple employed a selective distribution model, working with a limited number of authorized resellers and carriers. This strategy helped maintain control over the retail experience, ensuring that Apple products were always displayed and marketed according to the company's high standards.

Does Apple use dual distribution? ›

Mac products support two distribution channels: An app can be distributed via the Mac App Store. Apps and non-apps can be distributed outside of the Mac App Store using Developer ID signing.

How and where does Apple sell their products? ›

Place or Distribution: Apple's marketing mix strategy channel takes advantage of both online and offline distribution channels. They sell their products through channels such as Apple Store locations, company-owned websites and online stores.

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