Benefits of Outsourcing
Apple Incorporation “outsources most of its parts for the iPhone” (O’Grady 38). The decision to use many companies to produce the iPhone plays a significant role towards the success of the firm. The first benefit of outsourcing is to improve the quality of the iPhone without sacrificing service. The idea to outsource most of these services improves continuity. The practice also improves the level of operation thus reducing the risks associated with the iPhone production. Some of the required parts are produced in different countries. The idea to outsource these parts for the iPhone ensures the company produces the best device in the world. The company also gains new skills and ideas from these foreign companies. Apple Incorporation uses the practice to monitor its operations. Apple Incorporation produces more (or less) phones depending on the expectations of its global customers.
Outsourcing has made it easier for Apple Incorporation to maintain its financial position. The company can also operate successfully during holidays or off seasons. The decision to outsource has reduced most of the costs incurred by the firm. This approach has also increased the company’s profitability. The practice has also given the iPhone a competitive advantage over the other smartphones. The iPhone also offers the best mobile applications and features. The company has also increased its overall business. Apple Incorporation benefits from the practice because “its partners can deliver their services faster and efficiently” (Mclvor 58).
This ensures the company provides quality services to its global customers. Outsourcing has also increased the company’s efficiency. This explains why the iPhone remains one of the best mobile devices today. The company has always satisfied the changing needs and expectations of its global customer. This discussion explains why the company should always collaborate with foreign companies in order to achieve its business goals.
The Impact of Outsourcing on the Company’s 10-K
Apple Incorporation is a leading player in the computer and software industry. The company produces the best products such as the iPhone and the iPad. The company’s decision to outsource many parts for its devices and products has made it successful. Apple’s financial gains have increased in the last three years. The decision to outsource these parts ensures the company produces and markets the iPhone to many customers across the globe. Apple’s form 10-K shows how the decision to outsource these services has made it a leading player in the industry. The company’s net sales for its products have been on the rise.
Some of these devices include the iPod and the iPhone. This explains why the company is on the right track as a leading marketer of smartphones and computer software (O’Grady 76). The leaders at the company expect the volume of sales to increase in the coming years.
The benefits of outsourcing can improve the financial performance of every firm. This practice ensures every firm reduces the risks associated with its production. The process also increases flexibility thus improving the services availed to different customers. Apple Incorporation has also produced more smartphones within a short period (Mclvor 74). The company has produced competitive products thus making it a leading player in the industry. The current financial performance explains why Apple Incorporation should always outsource most of these parts in order to remain profitable (White 64). Apple Incorporation uses this strategy to market the iPhone and other devices to its consumers. The current performance shows why every organization should reconsider the benefits of outsourcing.
Works Cited
Mclvor, Ronan. Global Services Outsourcing. Cambridge: Cambridge University Press, 2010. Print.
O’Grady, Jason. Apple Inc: Corporations That Changed the World. New York: Greenwood, 2009. Print.
White, Carla. Idea to iPhone: The essential guide to creating your first app for the iPhone and iPad. New York: Wiley, 2013. Print.