JonathanDavi.es

The Best Supply Chain in the World

When Apple asks for a price quote for parts such as touchscreens, it demands a detailed accounting of how the manufacturer arrived at the quote, including its estimates for material and labor costs, and its own projected profit.

And:

Apple’s retail stores give it a final operational advantage. Once a product goes on sale, the company can track demand by the store and by the hour, and adjust production forecasts daily. If it becomes clear a given part will run out, teams are deployed and given approval to spend millions of dollars on extra equipment to get around the bottleneck.

So many people think that Apple makes money by charging a high price. No, it’s a high price and a high margin.

(via Dan Benjamin)

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