Is Apple a Manufacturing Company?

Xinwei Cao ()
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Xinwei Cao: Jiangnan University

Chapter Chapter 2 in Strategic Management and Organizational Development, 2025, pp 15-24 from Springer

Abstract: Abstract This chapter explores whether Apple is a traditional manufacturing company and its impact on the definition of manufacturing. Apple produces hardware like phones and computers, which superficially aligns with manufacturing characteristics. However, its asset-light operating model—mainly outsourcing production, avoiding large-scale fixed asset investment, and focusing on design and R&D—differs significantly from the traditional manufacturing model with high fixed assets and low profit margins. Apple ensures product quality through strict supply chain management, even though production is outsourced. This strategy allows Apple to quickly adapt to market and technological changes, maintain high profit margins, and redefine the traditional manufacturing industry, driving the shift toward technological innovation and efficient management.

Date: 2025
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DOI: 10.1007/978-981-95-0545-6_2

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