The notion of having friends in life is powerful. But even more powerful is the importance of supply-chain management. In a recent
article, Apple, Inc’s various suppliers are readily learning the importance of inviting other mobile devices companies as friends into their supply
chain management circle. According to the article “Down the Apple food chain, profits and some worry”, Apple, Inc’s suppliers are so hung over their relationship
with Apple that business elsewhere has nearly gone extinct.
For example, Tri-Quint, a supplier of power amplifiers that help Iphones communicate with cell towers are experiencing growth due to
its decreasing shares of stock by 58% in 2011. A good reason is due to the fact that Tri-Quintis so focused on its biggest customer rather than leveraging its
relationship with Apple, Inc’s many competitors. According to the Chron.com, “things have gotten so bad for Tri-Quint that the company had to help makers of Android mobil devices find new suppliers.
Despite the problematic concerns over Apple, Inc’s various suppliers, one suppliers of the technology company (Cirrus, Inc) has seen the better days–since its price of stock has risen 39% this year. The success of Cirrus, Inc is due to the intorduction of Apple 4S–whose intro is mainly due to the Cirrus technology. However, Cirrus has plenty of other suppliers. It is easy to claim that if indeed Cirrus keeps Apple, Inc as its only market, then stock prices will indeed fall.
As a question to my classmates, what is the importance of keeping many buyers in hand instead of dealing with one big buyer?
Below is the link to the article:
http://www.chron.com/news/article/Down-the-Apple-food-chain-profits-and-some-worry-2697299.php