Apple decided to secure its components at a higher price.
Nothing is stopping RIM from securing components at an even higher price.
It is the free market in action.
Another economic consideration:
Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
Now more than ever we can see how smart and complex is Apple business.
We all know that Apple is Steve Jobs ... but I think this winning strategy has the fingerprints of Tim Cook & others all over it. Bodes well for the future. Ya gotta luv it!
I can hear the droids complaining that Apple is too aggressive protecting a giant lead in a product category they literally created. The 'me too" pads will just have to wait to get the components they will need to compete.
Or better yet, that the cash payments amount to bribing manufacturers not hold off on making parts available to competitors.
We all know that Apple is Steve Jobs ... but I think this winning strategy has the fingerprints of Tim Cook & others all over it. Bodes well for the future. Ya gotta luv it!
Hell yeah I do love it!! I really love this company, it is not only for the products they made but the whole and how they do business. They will be the center and root of thousands of classes about economy and business management.
At this point I think some companies must be considering axe their tablet plans. For some.. there is no future at all.
Apple : Hey Japan, we know your country is in a shambles right now but here is some cash to make sure we keep receiving our stuff.
Japan : But we need food and water not money!
Apple : So? Make my stuff, this Apple isnt meant for eatin!!!
...maybe it didn't fit a snide commentary, but Apple is sending over a lot of money for relief efforts as well, and set aside a bunch of HR policies to allow Apple employees there to deal with the impact. Apple employees from all over the world are themselves contributing directly to supporting the relief effort as well. Feel kinda foolish now? Thought you might.
I think share holders should be happy on how Apple invest the money securing parts. Now more than ever we can see how smart and complex is Apple business. There is nothing wrong to buy in advance, more so if you have a product like the ipad2 that doesn't warm the shelves.
Competitors are really in a big problem. Not only cause their products lack the appeal of the iPad but they can't build them in quantities.
Sweet!
Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
The RIM bus shows up with it's 47 CEOS and 32 COOs that then proceed to stand in the corner bickering with each other and miss the fact that a deal is being made.
Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
But they will still have to get Andy Rubin's approval before they can ship anything.
Apple?s crime isn?t securing parts: clearly the demand is there and their users need those components.
The crime is that they unfairly invented a touchscreen smartphone, touchscreen pocket tablet, touchscreen full tablet, touchscreen OS and touchscreen app platform?and made them great?before anyone else. Starting with porting OS X to ARM as the basis for iOS. What other company could do that, years ago? If Apple had any decency, they would have waited so that the other players could all begin at the same time, with no head starts for anyone. Now, we?re stuck with a situation where some people want a tablet, badly, and all they can get is an iPad, when what they really want is a bulkier copycat with worse battery life and less choice of apps (ironically, in the name of "choice").
You make an interesting point. France should look into this, as this is clearly anticompetitive by some standards.
Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
It is already open and even now they told HTC and others over what hardware they can built devices to avoid fragmentation.
Come on...don't stop there... it's getting interesting!!!
The ground starts to shake a blinding light comes through the windows. A massive spaceship lands in the parking lot and out pours and endless stream of little green robots. They come in all different shapes and sizes, each claiming to be Android. Everyone looks up as they hear the distant thump of Andy Rubin's approaching helicopter.
...
I would continue but everything gets confusing when you bring Android into the picture...
Well this is more about making sure that they have enough components than trying to close out competitors. They have enormous amount of demand for the iPad, and are paying up front to make sure they can secure the components they need. If they don't do this, there will continue to be shortages for the iPad 2.
Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
The government would never do that!
/automobilesagricultureoilgasaerospace
Well, only if it protects American-based companies!
Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
There are no touch panels made in the US. Except for that tiny little problem, sure, the US Govt could step in and regulate supply.
The ground starts to shake a blinding light comes through the windows. A massive spaceship lands in the parking lot and out pours and endless stream of little green robots. They come in all different shapes and sizes, each claiming to be Android. Everyone looks up as they hear the distant thump of Andy Rubin's approaching helicopter.
...
I would continue but everything gets confusing when you bring Android into the picture...
If Apple supposedly bought up all the component supplies just to block out competitors, they're idiots. What if the iPad and other products had not been as successful as Apple thought it would be? Apple would be sitting on mountains of components
While creating shortages for competitors and squeezing their margins is a welcome side effect, the logical reason for Apple offering upfront cash payments is so that Apple can get the best possible price deals and ensure as much supply as possible.
What's stopping competitors from doing the same, other than the fact that they do not have Apple's cash reserves, something that Apple legitimately built up. I understand that bloggers and online journalists want hits, so they're probably going to spin this move as anti-competitive.
Another thing that this teaches us is that being a successful tech company is not just about making good products. Things like effective supply chain management actually matter.
Another thing that this teaches us is that being a successful tech company is not just about making good products. Things like effective supply chain management actually matter.
Comments
What perception?
Its supply and demand.
Supply is low and demand is high.
Apple decided to secure its components at a higher price.
Nothing is stopping RIM from securing components at an even higher price.
It is the free market in action.
Another economic consideration:
Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
Now more than ever we can see how smart and complex is Apple business.
We all know that Apple is Steve Jobs ... but I think this winning strategy has the fingerprints of Tim Cook & others all over it. Bodes well for the future. Ya gotta luv it!
I can hear the droids complaining that Apple is too aggressive protecting a giant lead in a product category they literally created. The 'me too" pads will just have to wait to get the components they will need to compete.
Or better yet, that the cash payments amount to bribing manufacturers not hold off on making parts available to competitors.
We all know that Apple is Steve Jobs ... but I think this winning strategy has the fingerprints of Tim Cook & others all over it. Bodes well for the future. Ya gotta luv it!
Hell yeah I do love it!! I really love this company, it is not only for the products they made but the whole and how they do business. They will be the center and root of thousands of classes about economy and business management.
At this point I think some companies must be considering axe their tablet plans. For some.. there is no future at all.
Apple : Hey Japan, we know your country is in a shambles right now but here is some cash to make sure we keep receiving our stuff.
Japan : But we need food and water not money!
Apple : So? Make my stuff, this Apple isnt meant for eatin!!!
...maybe it didn't fit a snide commentary, but Apple is sending over a lot of money for relief efforts as well, and set aside a bunch of HR policies to allow Apple employees there to deal with the impact. Apple employees from all over the world are themselves contributing directly to supporting the relief effort as well. Feel kinda foolish now? Thought you might.
I think share holders should be happy on how Apple invest the money securing parts. Now more than ever we can see how smart and complex is Apple business. There is nothing wrong to buy in advance, more so if you have a product like the ipad2 that doesn't warm the shelves.
Competitors are really in a big problem. Not only cause their products lack the appeal of the iPad but they can't build them in quantities.
Sweet!
Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
The RIM bus shows up with it's 47 CEOS and 32 COOs that then proceed to stand in the corner bickering with each other and miss the fact that a deal is being made.
Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
But they will still have to get Andy Rubin's approval before they can ship anything.
Apple?s crime isn?t securing parts: clearly the demand is there and their users need those components.
The crime is that they unfairly invented a touchscreen smartphone, touchscreen pocket tablet, touchscreen full tablet, touchscreen OS and touchscreen app platform?and made them great?before anyone else. Starting with porting OS X to ARM as the basis for iOS. What other company could do that, years ago? If Apple had any decency, they would have waited so that the other players could all begin at the same time, with no head starts for anyone. Now, we?re stuck with a situation where some people want a tablet, badly, and all they can get is an iPad, when what they really want is a bulkier copycat with worse battery life and less choice of apps (ironically, in the name of "choice").
You make an interesting point. France should look into this, as this is clearly anticompetitive by some standards.
Google should respond by making the hardware open source and with creating the necessary tools to let anyone make screens and chips in their own kitchen.
It is already open and even now they told HTC and others over what hardware they can built devices to avoid fragmentation.
Come on...don't stop there... it's getting interesting!!!
The ground starts to shake a blinding light comes through the windows. A massive spaceship lands in the parking lot and out pours and endless stream of little green robots. They come in all different shapes and sizes, each claiming to be Android. Everyone looks up as they hear the distant thump of Andy Rubin's approaching helicopter.
...
I would continue but everything gets confusing when you bring Android into the picture...
So, Tim Cook knew there was going to be an earthquake and tsunami before it happened?!?
Steve Jobs.....being god..... had it all arranged......
Another economic consideration:
Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
The government would never do that!
/automobilesagricultureoilgasaerospace
Well, only if it protects American-based companies!
/sematechwaterelectricitycorporatetaxrates
Another economic consideration:
Should some government entity step in and declare Apple's long-term supply contracts as unfair and block this action? What a bunch of nonsense that would be...to attempt to "level" the playing field to give Apple's competitors a better chance. That would be like rewarding a set of less efficient companies that do not have the sophistication to either create products that consumers desire, or the foresight to enter into strategic relationships with their suppliers.
There are no touch panels made in the US. Except for that tiny little problem, sure, the US Govt could step in and regulate supply.
The ground starts to shake a blinding light comes through the windows. A massive spaceship lands in the parking lot and out pours and endless stream of little green robots. They come in all different shapes and sizes, each claiming to be Android. Everyone looks up as they hear the distant thump of Andy Rubin's approaching helicopter.
...
I would continue but everything gets confusing when you bring Android into the picture...
Nicely wrapped....
While creating shortages for competitors and squeezing their margins is a welcome side effect, the logical reason for Apple offering upfront cash payments is so that Apple can get the best possible price deals and ensure as much supply as possible.
What's stopping competitors from doing the same, other than the fact that they do not have Apple's cash reserves, something that Apple legitimately built up. I understand that bloggers and online journalists want hits, so they're probably going to spin this move as anti-competitive.
Another thing that this teaches us is that being a successful tech company is not just about making good products. Things like effective supply chain management actually matter.
Another thing that this teaches us is that being a successful tech company is not just about making good products. Things like effective supply chain management actually matter.
Which is Tim Cook's forté.