A wrinkle in Apple’s supply chain could spell doom for the technology giant. Procurious wonders whether we ought to be worried.
The announcement of a new iPhone/iPad is the stuff of headline news the world over. Apple is one of the most respected titans in the hardware industry, its products have a stranglehold over the hearts and minds of millions (in-fact the level of fanaticism is downright spooky). OK there may be the odd misstep (lest we forget the Apple Maps debacle), but with its impressive track record and market dominance – Apple’s products represent go-to gadgets of choice for most businesses and consummate professionals the world over.
The iPhone’s and iPad’s ability to blend effortlessly into your (doubtless) existing Apple ecosystem makes a world without this modern staple unthinkable to many, but a worrying new report from Taiwan’s Commercial Times hints at dark days ahead for everyone’s favourite fruit.
The rumour mill says we can expect to see two new iPhones (iPhone 6) in the not-too-distant future. According to the paper however, production on the larger (5.5-inch) iPhone handset could be delayed until 2015 due to difficulties in sourcing a supplier for the super-thin 2mm battery. Apple’s tough ask involves shrinking their existing battery technology by a considerable 33% – such a demand puts suppliers under immense strain and will almost certainly affect the production cycle, the effects of which will reverberate the length of the chain.
There’s a convincing argument here for the power of the brand – at this stage in its heritage, Apple’s customers will happily wait for the next-generation to arrive in their hands. But how does this make you feel as procurement professionals – can you sympathise with the situation or this unrelenting thirst for innovation a reckless and dangerous play?
We must wonder too what this could mean for Apple. Can we expect to go through the same motions a few more years down the line – a couple more supply problems, a few more delays? If so disillusionment could surely (and will easily) set in. Look at the once mighty darling of enterprise – BlackBerry. Poor components and overall build-quality affected both the Storm and PlayBook, while delays to BlackBerry software and unsold inventory effectively unseated this once proud King.
It’s not all doom and gloom though – recent iPhone sales figures point to strong Apple earnings. Overall Apple saw a 4.6% increase in quarterly revenue, far-and-away beating Wall Street expectations. However iPad shipments were shown to be on the decline (an almost 20% drop – ouch), and with the company soon to enter the wearables marketplace we wonder whether Cupertino’s finest is starting to spread itself too thin…
We must remember that Apple is also forging ahead and reporting success in BRIC countries – the iPhone has just set sales records in Brazil, Russia, India and China. And with competitor Nokia also looking to developing markets to consolidate their rule, such space could prove quite the battleground in the fight for market dominance. Whatever the outcome, the future looks set to be very interesting indeed…
Are Apple’s products still the apple of your eye? Join in with the discussion! Leave your comments below.