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How is Apple vertically integrated?
by Aloha 8y ago
How is Apple vertically integrated?
- shereadsthenews 8y agoThey’re not. They buy camera module from Sony, radios and many other modules and ICs from lots of others and the phones are assembled by Foxconn.
- amelius 8y agoSee: https://www.investopedia.com/terms/v/verticalintegration.asp https://www.investopedia.com/terms/v/verticalintegration.asp > Apple Inc. is one of the best-known companies for perfecting the art of vertical integration. The company manufactures its custom A-series chips for its iPhones and iPads. It also manufactures its custom touch ID fingerprint sensor. Apple opened up a laboratory in Taiwan for developing LCD and OLED screen technologies in 2015. It also paid $18.2 million for a 70,000-square-foot manufacturing facility in North San Jose in 2015. These investments allow Apple to move along the supply chain in a backward integration, giving it flexibility and freedom in its manufacturing capabilities.
- erichocean 8y agoThey design their own CPUs and co-processors.
- HALtheWise 8y agoCharitably, they design their own main processors, their phones, their OS's, and many apps. From a hardware perspective, they are definitely less vertically integrated than Samsung, but they have vertical integration in the SOC/firmware/software/apps chain. It's not clear whether that actually drops their costs much, though, which was the original point of the comparison.
- scarface74 8y agoThey also have their own stores where they don’t have to compete for attention from other manufacturers, they make money from their services, etc.