These days Apple people are claiming that they have sold more than 3 million iPhones in 2007 and they estimate that they are going to sell another 7 million in 2008.

I don't know how many component an iPhone has but if we consider it roughly at the same level as video iPod (which is a reasonable estimate), the number will be around 450 component. These parts are coming from more than 10 suppliers in 7 countries.

For a company like Apple which sells premium products such as iPod, Mac Computers and so on, the cost is important but not that much (like in cost leader companies). So the primary goals are usually other things: Availability, Speed, capacity management in Suppliers' side and so on.

In my point of view then, the very interesting aspect of Apple as a company apart from its innovation and brand image is its supply chain management capabilities because so far the company has been able to create enough flexibility to meet changing customers' demands.

The question that remains in the mind is: Are there any areas for improvement for a company like Apple? I came up with one. I appreciate if you tell me about the others:

I think, for example, that one area for improvement in Apple is to strengthen resiliency in its supply chain to reduce the cost of lost opportunity. Imagine if an accident like a fire happens in one supplier's plant, how the components be sourced alternatively?

What do you think?