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iPhone 4S a victory for China

Posted by VdoCity Sunday, October 23, 2011
Earlier this month, Apple launched the iPhone 4S with a mixed response - which many fans were disappointed Apple did not release a completely new "iPhone 5."

One reason Apple could have frustrated the design and release of a brand new phone due to the impact it would have on their manufacture and finely polished and management processes of the supply chain.

New features will always play an important role in marketing the new iPhone, however, the perfect symphony of parts, packaging and postage is one of the most vital aspects of the implementation. China highly refined systems supply chain support are certainly a feather in the cap of companies like Apple, Acer, Amazon, Nokia and Motorola.

In the center of the assembly of the iPhone 4S is Foxconn, a Taiwanese company that produces several investment iPhone parts and assembling the final product. Foxconn is mainly based in Shenzhen, however in recent years, the company has expanded its production base to other cities to deal with higher labor costs in the traditional centers, such as Shenzhen.

Foxconn addition, there are thousands of companies working in the electronics industry in Shenzhen and Dongguan, a city on the north side - these major cities serve as the capital of China's electronic and electrical appliances.

Industry experts have said that Foxconn was producing at least 150,000 next-generation iPhones every day from September, while Apple expects to sell 25 million units by the end of the year. Judging by the numbers, Foxconn will work hard to meet expected orders from Apple, which require a huge effort the supply chain.

So how does the iPhone to migrate from a concept in the minds of designers from Apple, a product it believes Twitter, messages, calls, take pictures and download at any time of day?

Designed for the first time in the U.S. by Apple, vendors are asked to quote the parts that make up the bill of materials design. A plan of the complex supply chain is developed and gained orders. Parts are produced as large as Singapore (Communications, CPU and video processing), Taiwan (camera lenses and parts, circuits, Bluetooth technology, circuit boards and housings), Germany (voice and data calls chips) and the U.S. (Software, touch screen and memory chips).

These, along with many other parts are sent to a massive Foxconn facilities, meeting for the validation of manufacturing systems and prototype products, refined and then signed for mass production.

Once boxed and ready for shipment, the iPhone is distributed through its own sales of Apple, wholesalers, retailers and operators in 90 countries and in collaboration with 160 operators around the world.

With such a long journey from its inception until his pocket, all you need do now is make sure that the back of his car in the new 4S iPhone or drop in a pond of fish (I've heard all these things pass!).

Scale offers a tremendous opportunity in terms of profit margins. I believe that Thai companies can benefit from China not only as a source of cheap products imported into Thailand, but with the right input in innovation and design, as well as a partner in the wider supply chain of some of the largest global brands and high-valued products.


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