By: Shermon Jones
As we discussed in class Outsourcing is a practice used by different companies to reduce cost by transferring portions of work to outside suppliers. This has been proven to be an effective cost-saving strategy that most major companies in the United States use. Companies such as Nike, Apple, Microsoft etc. all use outsourcing for the advancement of their company.
Apple for example prides itself on creating and innovating their products while keeping their current consumers at their fingertips and attracting new customers. In the United States, design is as far as Apple is willing to go. They outsource thousands of manufacturing jobs to countries such as China, Korea, Taiwan and Mongolia to not only save money, but to save time as well.
Although outsourcing may be beneficial to the company, there are lots of risks that could negatively affect their products, sales and consumers. Some risks that companies that use the outsourcing techniques needs to be aware of are product quality problems, threat to security and confidentiality, bad publicity and ill-will etc.
Although outsourcing may be beneficial to the company, there are lots of risks that could negatively affect their products, sales and consumers. Some risks that companies that use the outsourcing techniques needs to be aware of are product quality problems, threat to security and confidentiality, bad publicity and ill-will etc.
Foxconn is the factory in China that produces the Apple products that we know and love. These products are hand made by over 265,000 employees daily. Employees spend at least 12 hours' day, where they only earn a little over $2 an hour. They put a lot of effort into these products and they feel that they deserve higher pay. Most employees of Foxconn have never seen a finished Apple product. This goes to show that although Apple may be saving money by outsourcing, the employees that are completing jobs that would pay over $20 in the US are not being compensated as they should.
Shermon A Jones Jr.
Clark Atlanta Unversity' 17
C: (678)-358-1842
Iphone are extremely over priced. If labor cost is so low, are are the phones sold for so much. I can image the exchange rate is probably where they lose so much money.However, Apple is definitely getting over on us consumers.
ReplyDeleteI believe that iPhones are overly priced as well and the quality is not the best. The phone screens tend to crack a lot easier than other brand devices. Apple will continue to grow dramatically amongst consumers because of its popularity.
ReplyDeleteI agree with the previous comments. I also agree with the cost efficiency of outsourcing. I do not believe Apple does a great job with acquiring the best quality when targeting specific companies to use for outsourcing. I love the ease of use and even the newer models of their product, but it would be great to have my screen last more than a couple of weeks. Realistically, if Apple produced the "perfect indestructible phone," then customers wouldn't continue to buy its products as often. Regardless of Apple's decisions they will continue to develop and expand their brand and make tons of money while doing it.
ReplyDeleteI agree with the comments above, with Apple overpricing their phones. Its sad how they pay little to nothing to get an iPhone made overseas and come back to the US and sell them over double the price. Apple knows that iPhone are a high demand in todays industry and that people are willing to pay the price for their products which is why the price stays as high.
ReplyDeleteMy personal guess is that Apple sales (although already have) will plummet. I don't feel the company works for the people but simply for beneficial gains solely for themselves. Outsourcing can result in low quality products which are sold to customers at hicked up prices. So we will definitely see if their methods become a hindernce to the companies welfare in the near future.
ReplyDeleteI think this goes along with ethics as well. While outsourcing may be cost effective, how much money will be lost in the long run when Apple customers decide to stop using their products because of the quality or because of their not so ethical business practices? I'm sure we've all seen or heard of different companies outsourcing but they make sure their oversees operations are ethical by making sure workers are treated and paid fairly. I think a popular and high visibility company like Apple should be a little more cautious when it comes to things like that.
ReplyDelete-Taylor Farmon
Apple does over price the iPhone and many of there products. Why do we continue to support a company that over prices its products when there are other phones like Samsung that works just as good or even better in some cases, I don't know but I feel in the future there will be a change in competition.
ReplyDeleteApple is definitely getting over, but we are also feeding into it ! Everyone has product FOMO, so they feel the need to have the newest and latest technology, when it actuality, its only very slightly different from the old one! Apples strategy of getting customers is okay, but soon, their prices are going to start driving people away from them and to their competitors.
ReplyDelete-Astiee Carver
This blog further confirmed my dislike for apple as a business. Immediately upon reading I noticed the topic of the companies major outsourcing. I quickly thought of the pricing of the products and became confused. Why charge consumers an arm and a leg for something you got for cheap. This is a moral code that I believe should be evaluated.
ReplyDeleteI am a apple user but I do not agree with how they are treating the people making the products. Before seeing this video I had no idea, I believe for as much as we pay for these products they should at least be paying these people a decent amount of money for their time! But great post.
ReplyDeleteWow, I did not know about Foxconn. That makes me question Apples ethical standards and codes because that goes to show how important the money and profit is to this company. It is a smarter way to do business but is it all about the money? Being an aspiring entrepreneur I know there might be a time where I might need to outsource because of the benefits such as cutting cost and time. However my companies morals will not be put into question when that time come. Thank you for this eye opening blog post.
ReplyDelete