January 3 (Xinhua) — Apple will restructure its suppliers of airPods Pro, the next-generation smartwatch, the Apple Watch and the portable mobile iPod Touch, according to a new study by Ming-Chi Kuo, a prominent apple analyst, according tomedia BGR. This highlights Apple’s relentless efforts to maximize supply, streamline operations and improve profitability.
In particular, Mr. Guo noted that Luxshare Precision, based in Shenzhen, China, would be the only supplier of s-series chips on the Apple Watch. Meanwhile, Apple has approached Another Chinese company, Goyle, to help it produce the AirPods Pro. As a result, Apple will soon have two suppliers of AirPods Pro, which will eventually help the company meet consumer demand for the next generation of AirPods Pro.
During the recent holiday sales season, airPods Pro supplies are a bit low and hard to find. Some analysts say Apple is still struggling to meet consumer demand. In addition, overall interest in various Models of the AirPods has exploded in recent months. Apple’s cumulative AirPods shipments in 2019 are expected to double from 2018, according to a study a few weeks ago.
While it may seem common for Apple to adjust or add suppliers, it highlights the operational strengths of the company’s business. Infact, Apple’s financial success over the past 20 years owes much to its success in its operational strategy.
When Tim Cook first joined Apple in 1998, he was senior vice president of global operations. Immediately after taking office, Mr. Cook streamlined the company’s supply chain and sharply reduced its product inventory.
Many may recall that in the early part of the first decade of the 21st century, Cook had the foresight to prepay suppliers billions of dollars to secure discounts on flash memory chips. Not only did the move ultimately help Apple improve its profit margins, it also ensured that it was able to meet strong consumer demand for its multimedia player, the iPod. (Liu Chun)