Who makes the parts (vendor) for a Company? Example - Apple

[max momo]

Great Question.

Somebody asked in another thread -

How Can you Determine Who makes the parts (vendor) for a Company? The example asked was Apple.

I don’t know too much about the tech sector (I focus on minig and materials, commodites), but the due diligence/competitive intelligence process is the same for all sectors.

1. The best tactic is to go to the tradeshow (MacWorld) and see the vendor displays.

2. Another tact is to break down the product line by segment.

For example, the computer:

Apple makes the case, and subs out the components:
- Motherboards, CPUs, RAM, graphics cards
- Processors
- monitors ( LG Philips panels)
- hard drives,
- fans
- power supply
etc


Apple computers are assembled in the US, Ireland Singapore and China.

The components must be top flight, and must be produced by large capable manufacturers.

So, break down the vendors by the top three tier firms for each component.

Hence, most the chips are made by Intel (the market leader) and their main competitor - AMD. ARM has license for much of the microprocessors that are branded IBM and Motorola but mostly made in the Taiwanese shops.

One reason Apples computers are expensive is because they maintain a tight monopoly on both their vendors AND their downline. Apple sells replacement parts themselves.

The Ipod
Apple makes the case (and has had trouble with white)
Vendors supply the components. Inventec and Foxconn are two of vendors that manufacture iPods in China and Taiwan, respectively. Toshiba makes the hard drives and BroadCom and PortalPlayer provide the chips. TI mskrd trh FireWire interface and the battery is from Sony. Sharp produces the flash memory.

So you can see, most of these are major businesses, not mom and pop suppliers.

1. You can often find out vendors by default through articles written which are critical of the firm. These are written primarily by NGOs, watchdogs, and disgruntled former vendors/employees. Remember the stories about apple using child labor in China? That is how Inventec and Foxconn became known.

1. Learn the DUNS and BizOpps systems. You can find who Markets to the big manufactures. This is the pool that eventually becomes vendors.

1. Learn the product inputs. When you figure out the Universal Standard Products and Services Classification (UNSPSC) for one component, you can find the manufacturer pool for that particular part.

1. Read the company’s 10-K. You can find out A LOT of information here. The company will report on risk, and supply disruptions. Often they will mention ‘supply problems for power units in India’ or something similar. With that info you can often narrow down the vendor with careful research.

1. Ask the employees. Some will talk even when they shouldn’t. You can find thes folks interviewed in the industry trades papers and on the blogs.

Great question, competitive intelligence is fun stuff!

 

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[Bozigian]

Exituni, O ciip xupfisoph og tvudl qsodit soti ug tuni ug vji nepagedvasisit xju jimq neli vji Oquf/qef hu aq et ximm.

Eqqmi Tvudl 3 zs---{Eqqmi Oquf/qef}

Opvim tvudl 3 zs---{nutv djoqt esi nefi cz opvim}

Efwepdif Nodsu Fiwodit ENF tvudl 3 zs--{opvim't dunqivovus}

Csuefdun Dusq CSDN tvudl 3 zs--{csuefdun qsuwofi vji djoqt}

 

[DrummerDad]

Lopf ug up vji teni mopit, O jewi guapf ov piyv vu onquttocmi vu gopf vji nepagedvasoph opgusnevoup up nett qsufadvoup gus tuni ovint. Puv tu nadj nevisoemt, cav vji niept vu qsufadi op e tvsienmopif, epf qsugovecmi xez.

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Op uvjis xusft, ovt puv upmz xju nelit epf taqqmoit vji qesvt. Ovt emtu xju ettincmit vjin, epf jux. On enebif xjip O xevdj "jux ovt nefi" epf vji uvjis tjuxt moli ov. Vji iphopiisoph opwumwif gus e nedjopi vu neli e tonqmi qeqis dmoqt ot etvupotjoph.

 

[BillyShears]

Hsiev Raitvoup.
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