1. INTERNATIONAL LOGISTIC AND
SUPPLY CHAIN OUTSOURCING
CURRENT ISSUES AND INFLUENCES
Chapter Summary
Prepared by:
Aditya Lukmanjaya – 3094815
Eka Darmadi Lim – 3094802
FACULTY OF BUSINESS AND ECONOMICS
UNIVERSITY OF SURABAYA
EVEN SEMESTER 2011-2012

2. Deregulation, packaging apple
Smaller packaging
Apple employs teams of design and engineering experts who develop
product packaging that’s slim and light yet protective. Efficient packaging
design not only reduces materials and waste, it also helps reduce the
emissions produced during transportation.
For example, the packaging for iPhone 4 is 42 percent smaller than for the
original iPhone shipped in 2007. That means that 80 percent more iPhone
4 boxes fit on each shipping pallet, more pallets fit on each boat and plane,
and fewer boats and planes are used — resulting in fewer CO2 emissions.
Apple Recycling program:
Once an Apple product reaches the end of its useful life, we will help you
recycle it responsibly. Apple has instituted recycling programs in cities
and college campuses in 95 percent of the countries where our products
are sold, diverting more than 115,504 metric tons of equipment from
landfills since 1994. Our goal in 2010 was to achieve a worldwide
recycling rate of 70 percent. (To calculate this rate, we use a measurement
proposed by Dell that assumes a seven-year product lifetime. The weight

3. of the materials we recycle each year is compared to the total weight of the
products Apple sold seven years earlier.) We met and exceeded that goal
in 2010. This far surpasses the last reported numbers from Dell and HP,
which were each lower than 20 percent. In 2011, Apple global recycling
once again exceeded our 70 percent goal, and we are confident that we
will maintain this level through 2015.
Product recyclability
Apple’s approach to recycling begins in the design stage, where we create
compact, efficient products that require less material to produce. And the
materials we do use — including arsenic-free glass, high-grade aluminum,
and strong polycarbonate — are reclaimed by recyclers for use in new
products. Even our product packaging uses recyclable materials wherever
possible.
Longer-lasting products
Apple designs products that last. The built-in battery in our MacBook Pro
lineup is a perfect example. Other notebook batteries can be charged only
200 to 300 times. The MacBook Pro battery can be charged up to 1000
times.6 and because this battery lasts up to five years, MacBook Pro uses
just one battery in about the same time a typical notebook uses three. That
saves you money, produces less waste, and increases the lifespan of your
MacBook Pro.
Responsible recycling:
All e-waste collected by Apple-controlled voluntary and regulatory
programs worldwide is processed in the region in which it was collected.
Nothing is shipped overseas for recycling or disposal. Our recyclers must
comply with all applicable health and safety laws, and Apple does not
allow the use of prison labor at any stage of the recycling process. Nor do
we allow the disposal of hazardous electronic waste in solid-waste
landfills or incinerators.

4. Supplier List  PDF
LTE Module (4G)  Qualcomm
Apple A4, A5, A5X Chip  Samsung Electronic
iPhone, iPad Display  Sharp
Apple Flash Memory 16,32,64Gb  Toshiba & Samsung
Chip of touch screen  Broadcom
Touch Panel  Wintek
Case (iPad)  Catcher Technologies
Accelerometer  STMicroelectronics
Batteries  Simple Technology
Home shop apple
Apple already open “Apple Store” that we can purchase every apple
product right on your computer screen, Apple store open in USA, for the
first time, but already expanse to Indonesia, the purpose apple open the
online store, to make customer easier to buy the product, the product that
customer order will be delivered within 2 weeks.
For example I want to buy ipad

7. Partnership
1. AT&T and Verizon  Cellular Provider
AT&T is one of Apple's closest business partners and was the sole
U.S. carrier of the iPhone between 2007 and 2011. In February
2011, competitor Verizon Communications also began selling the
iPhone 4.
For AT&T, the iPhone has been a major hit. The company, for
example, had 3.6 million activations of iPhones in just the first
three months of 2011, 23 percent of whom were new subscribers to
AT&T. In the first half of this year alone, AT&T has had 7.2
million iPhone activations.
After Apple announced that Steve Jobs would step down as CEO,
the chairman and CEO of AT&T, Randall Stephenson, released a
statement saying Jobs "is one of the industry's most gifted
entrepreneurs, visionaries, and creative minds." The wireless
provider also said it looked forward to collaborating with the new
CEO Tim Cook and his team

8. Verizon initially lost out on the iPhone when Apple went with
AT&T in 2007.
But in February 2011, the largest U.S. telecommunications carrier
ended years of anticipation by launching its first Apple product, the
iPhone 4. Verizon and Apple had reportedly been in talks since
2008 and spent a year testing the iPhone on Verizon's CDMA
network.
About one million Verizon iPhones were sold in just the debut
weekend, with 60 percent of the sales coming from pre-orders. In
total, 4.5 million new iPhones connections were sold by Verizon in
the first six months of the year.
2. TPK Holdings
TPK Holdings is the world's largest touch-panel supplier by
volume, with 30 customers in total from the U.S., Japan, and South
Korea. The Taiwanese company is the largest supplier of touch
panels to Apple for iPads and iPhones.
More than 70 percent of TPK's revenues of $1.12 billion in the
second quarter of this year came from Apple. Robust sales of
Apple's products helped TPK post record profits in the latest
quarter.
Analysts have been bullish on the stock, with UBS forecasting a 40
percent upside for the shares.
3. Foxconn  Producing Apple component
Foxconn Technology Group is the world's largest electronics
manufacturer. Foxconn is the trade name for Hon Hai Precision
Industry , which is the largest exporter in the Greater China region.

9. The Chinese tech giant assembles Apple's iPads, iPhones, iPods,
and Mac computers in manufacturing plants across China and
Taiwan. Foxconn came under fire last year for working conditions
in its factories, after a string of suicides at its Shenzhen plant. The
company has responded by setting up suicide hotlines, offering
counseling, and installing safety nets at its plants.
Foxconn has also been trying to cope with rising labor costs in
China. To meet the challenge, the company is planning to switch to
using robots and reportedly will deploy one million of them within
three years up from about 10,000 currently in use.
4. Intel  Processor manufacture for MAC Product
Intel's relationship with Apple began in 2005, when Jobs
announced that Apple would make a transition away from IBM's
PowerPC microprocessors in its Macintosh computers to
processors made by Intel. The first generation of Intel-based Macs
were released in 2006.
Reports suggest that Apple may once again turn to Intel to create
mobile-processor chips that power devices such as the iPhone and
iPad.
The company has been trying to gain market share in the rapidly
growing area of wireless chips, which has been dominated so far
by Qualcomm. Last year, Intel bought German chipmaker Infineon
Technologies' wireless business for $1.4 billion. Infineon's wireless
customers include Apple, Samsung Electronics and Nokia .
5. Quanta Computer  Manufacture motherboard, MAC component
Taiwan's Quanta Computer manufactures the iMac and Macbook
line of computers for Apple. The Taiwan-based company's

10. relationship with Apple dates back to the second-generation
WallStreet PowerBooks of 1998.
Quanta is the largest manufacturer of notebook computers in the
world, supplying brands such as Hewlett-Packard and Gateway . In
fact, one out of every three laptop PCs are manufactured by the
firm.
But the company has been under pressure lately, reporting a
month-over-month drop in sales in July. The company shipped
31.9 million portable PCs between January and July of this year.
6. Samsung Electronics  Storage Flash
Samsung is the world's largest maker of memory chips. The South
Korean technology giant, which supplies chips and flash drives to
Apple, has had a turbulent relationship with Apple in recent years,
acting as both a supplier and a competitor in the smartphone and
tablet space.
The two companies have been battling over the past year, with
Apple accusing Samsung of copying the iPhone's software and
layout. In turn, Samsung has filed a counterclaim against Apple
over patent infringement.
On Thursday, Samsung shares rose after a favorable court ruling in
Netherlands and news that Steve Jobs stepped down as CEO.
Despite the lawsuits, the two have continued their manufacturer
and supplier partnership. Reports suggest that the partnership
between the two is worth more than $5 billion.
7. Toshiba  LCD Panel Supplier

11. Toshiba supplies the LCD panel for the iPhone 3GS, flash drives
for the iPhone 4, and is reported to be involved with the Retina
display of the iPhone 4.
The Japanese conglomerate is listed on four different stock
exchanges around the world, including New York and London.
In December, the company announced plans to spend $1.2 billion
to build a factory in Japan's Ishikawa prefecture to make small
high-resolution LCD panels, mainly to supply Apple's iPhones.
According to the Nikkei business daily, Apple would also invest in
the plant.
8. Catcher Technology
Catcher Technology is one of the Taiwan’s top makers of
magnesium and aluminum casings for PCs and handsets.
The company supplies metal casing for Macbooks, and has seen its
shares surge nearly three-fold over the past year.
The stock now trades at 17 times earnings on the back of large
orders placed by Apple. Citigroup, Macquarie, and Bank of
America Merrill Lynch have all raised their share-price estimates
for Catcher after the firm posted earnings of $82 million from
April to June, up 24 percent from the first quarter, and 183 percent
from 2010.
9. Wintek
Wintek is a Taiwan-based electronic-component maker, with
operations in China and India. The firm supplies touch screens for
Apple’s iPhones.

12. The company has been facing pressure on the pricing front.
According to a report last week from Digitimes, Wintek has
received touch screen orders from Apple at prices nearly 50
percent lower than previous shipments, even as volumes have
increased significantly for the third quarter.
Analysts are speculating that Apple could be preparing for the
usual price cuts ahead of a new product release—the iPhone 5.
The company also made headlines earlier this year after reports
surfaced that workers in China were allegedly poisoned by
chemicals while making the panels. The company has already paid
about $1.5 million to 91 workers poisoned in 2009.
Employees wrote a letter to Jobs appealing for help after the
poisoning, and an Apple representative visited the plant to listen to
their demands. Apple has since ordered Wintek to stop using the
chemical, N-hexane, and provide evidence that it has been
removed from production lines.