More iPhone 5c Supply Chain Rumors

More iPhone 5c Supply Chain Rumors

This article talks about a major challenge to supply chain planning. To have ample supply of iPhone 5s and 5c, how many does Apple need to plan and what is the production mix between the 2 models?

Steve Jobs‘ idea was to take the simple route by planning for one iPhone model only and focused on getting the best product to consumers. Tim Cook takes a different but traditional approach by introducing two models instead of one. He hope a cheaper model of 5c would attract more buyers, at least from the Asia. At least, this what the production plan tells us at the moment. The production plans for more 5c than 5s.

Contrary to what Tim expected, consumers would rather spend money buying the expense model 5s with new technology than buying the cheaper model 5c with previous generation of technology. This is why Apple needs to dramatically decrease 5c production and increase 5s production. This shows a supply chain planning mistake. It totally mis-calculates consumer demand by having a wrong product mix.

Check out this article for the challenges that Apple is facing and how we can help you to manage your supply chain.

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