Delay in the supply chain causes amplified downstream problems ... Apple needs to have factories in China because the supply chain is there.
Oh and one more rule: no communicating between parties - your only communication was through order slips.
The US makes $150 per unit (to Apple) plus whatever profit the retailers make
I really don't get the absolute loathing finance people have for stocking inventory. "Time value of money" blah blah blah. There's value in being prepared for catastrophes too. And I don't mean "we don't have enough beer" catastrophes. I mean "the solar flare knocked out the power grid and we only have 1/100th the parts we need to rebuild it" catastrophes. -- DU
By moving its supply chain to China, Apple has minimized the risk of the kind of problem described in the article. It may not be "robust" by your definition, but it is safe. And also very profitable. -- jedicus
This seems like an inadequate reason/explanation/excuse. The supply chain in China didn't materialize in an instant. Manufacturing didn't pack up and move there overnight. -- Western Infidels
You say this as though the answer is so clear. But in any context other than business the answer is clearly the other way. "We decided not to give our kid braces because what if he died before he was old enough to mate?" -- DU
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