{"id":188,"date":"2018-01-22T10:01:08","date_gmt":"2018-01-22T15:01:08","guid":{"rendered":"http:\/\/blog.richmond.edu\/mgmt340-03\/?p=188"},"modified":"2018-01-22T10:01:08","modified_gmt":"2018-01-22T15:01:08","slug":"blog-post-2-apple-and-making-supply-chain-decisions","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/mgmt340-03\/2018\/01\/22\/blog-post-2-apple-and-making-supply-chain-decisions\/","title":{"rendered":"Blog Post #2- Apple and Making Supply Chain Decisions"},"content":{"rendered":"

\u201cWhy Are iPhone 8, 8 Plus Component Suppliers Halting Production Next Month?\u201d (http:\/\/www.ibtimes.com\/why-are-iphone-8-8-plus-component-suppliers-halting-production-next-month-2642269)<\/a><\/p>\n

\u201cPoor iPhone X Sales Are Good News for Apple\u201d (https:\/\/www.forbes.com\/sites\/ewanspence\/2017\/12\/18\/apple-iphonex-sales-q4-supercycle-fail-good\/#65249141386e)<\/a><\/p>\n

In response to low order numbers in 2017, Apple iPhone component suppliers are halting production for 2018.\u00a0 Other component suppliers have started to prepare for the consequences of decreasing iPhone orders.\u00a0 Apple claims that the low orders are believed to be due to seasonal factors.\u00a0 But, these declining orders for the iPhone 8 and 8 Plus began in the fourth quarter of last year, causing this trend to continue in 2018. In further research, a Forbes article, \u201cPoor iPhone X Sales Are Good News for Apple\u201d, states that this decline resulted in the release of the iPhone 8, 8 Plus, and iPhone X all around the same time.\u00a0 This continued decline insinuates that there is something else, not just seasonal factors, that is responsible for causing the trend.<\/p>\n

Apple\u2019s decline in orders relates to our class topic of Making Supply Chain Decisions.\u00a0 It is apparent that Apple is failing to properly evaluate business opportunities through the value in use method.\u00a0 The value in use method for a product, such as the iPhone, is the value or worth of that product in its intended use.\u00a0 There is a disconnect between Apple\u2019s value in use and Apple\u2019s customer value in use of the iPhone.<\/p>\n

From Apple\u2019s customer standpoint, they are asking themselves: is this new iPhone worth purchasing?\u00a0 This question takes into account order winners and order qualifiers in making their purchase decision.\u00a0 When an Apple customer is determining their need for a new phone they will look at factors such as camera quality, screen size, or any new benefits the phone will offer.\u00a0 These are considered to be the consumer\u2019s order qualifiers, as they are the minimal level required from a set of criteria for a firm to do business in a particular market segment.\u00a0 These consumers will then weigh these new benefits against what they currently have.\u00a0 When this is done, the consumer will determine just how badly their desire is for purchasing this new phone.\u00a0 As a result, the consumer then creates a perception of what they individually are willing to pay for the new iPhone.<\/p>\n

The consumer then assesses their individual perception against the price Apple is currently offering.\u00a0 When Apple offers the newest iPhone at a price in which consumers are not willing to pay, they lose the opportunity to increase iPhone orders and make the sale.\u00a0 This is because the price of the new iPhone exceeds the consumer\u2019s desire for the benefits offered.\u00a0 For Apple consumer\u2019s the order \u201canti\u201d winner here is price.\u00a0 This is because the high cost of these new iPhones is the determining factor for consumers not wanting to purchase the newest iPhones.\u00a0 For Apple, the high price is the serving as a deterrent of the purchase of their products.<\/p>\n

This is happening because Apple is not accurately assessing what price the iPhones should be sold for.\u00a0 The inaccurate price assessment is resulting in supply and demand issues.\u00a0 Based on the article, there has been a discrepancy between the consumer demand and the supply.\u00a0 Because of this discrepancy, suppliers are reaping the consequences of Apple\u2019s actions.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cWhy Are iPhone 8, 8 Plus Component Suppliers Halting Production Next Month?\u201d (http:\/\/www.ibtimes.com\/why-are-iphone-8-8-plus-component-suppliers-halting-production-next-month-2642269) \u201cPoor iPhone X Sales Are Good News<\/p>\n","protected":false},"author":3713,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[71160],"tags":[],"class_list":["post-188","post","type-post","status-publish","format-standard","hentry","category-making-decisions-defining-process-strategy"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/users\/3713"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/comments?post=188"}],"version-history":[{"count":0,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/188\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/media?parent=188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/categories?post=188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/tags?post=188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}