Strategic Plan for a Technology Term Paper

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As is shown in the low penetration globally an enhanced media platform is also critical for the company to take advantage of these trends.

Apple Technology Sourcing and Internal Innovation

The company is susceptible to a supply risk for key components. IBM is currently the company's sole supplier of the PowerPC G5 processor, which is used in its current Power Mac, Xserve, and iMac G5 products. Freescale is the sole supplier of the G4 processor, which is used in the company's eMac, Mac mini, and portable products. IBM experienced manufacturing problems with the PowerPC G5 processor, which resulted in delaying the shipment of various products and constrained certain product shipments during 2004, 2005 and in the first quarter of 2006. In a market where speed to market is critical, Apple's dependency for key components could put it at a competitive disadvantage.

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Apple outsources the majority of its manufacturing for both its iPod and Mac product lines to Taiwanese companies such as Hon Hai, Asustek, Quanta, and Inventec. The company's largest component suppliers include Intel for PC microprocessors, Toshiba for 1.8" iPod hard disk drives, and Samsung for NAND flash.

With the rapid growth of its iPod line, management of the supply chain has become a focal point for Apple, enabling the company to.....

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