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AAPL » Topics » The Company depends on component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S.This excerpt taken from the AAPL 10-K filed Oct 27, 2009. The Company depends on component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S. Most of the Companys components and products are manufactured in whole or in part by a few third-party manufacturers. Many of these manufacturers are located outside of the U.S., and are concentrated in several general locations. The Company has also outsourced much of its transportation and logistics management. While these arrangements may lower operating costs, they also reduce the Companys direct control over production and distribution. It is uncertain what effect such diminished control will have on the quality or quantity of products or services, or the Companys flexibility to respond to changing conditions. In addition, the Company relies on third-party manufacturers to adhere to the Companys supplier code of conduct. Although arrangements with such manufacturers may contain provisions for warranty expense reimbursement, the Company may remain responsible to the consumer for warranty service in the event of product defects. Any unanticipated product defect or warranty liability, whether pursuant to arrangements with contract manufacturers or otherwise, could materially adversely affect the Companys reputation, financial condition and operating results. Final assembly of the Companys products is currently performed in the Companys manufacturing facility in Ireland, and by external vendors in California, Texas, China, the Czech Republic and Korea. Currently, the supply and manufacture of many critical components is performed by sole-sourced third-party vendors in the U.S., China, Germany, Ireland, Israel Japan, Korea, Malaysia, the Netherlands, the Philippines, Taiwan, Thailand and Singapore. Sole-sourced third-party vendors in China perform final assembly of substantially all of the
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Table of ContentsCompanys portable Mac products, iPhones, iPods and most of the Companys desktop products. If manufacturing or logistics in these locations is disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or political issues, the Companys financial condition and operating results could be materially adversely affected. This excerpt taken from the AAPL 10-Q filed Apr 23, 2009. The Company depends on component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S. Most of the Companys components and products are manufactured in whole or in part by a few third-party manufacturers. Many of these manufacturers are located outside of the U.S., and are geographically concentrated in single locations. The Company has also outsourced much of its transportation and logistics management. While these arrangements may lower operating costs, they also reduce the Companys direct control over production and distribution. It is uncertain what effect such diminished control will have on the quality or quantity of products or services, or the Companys flexibility to respond to changing conditions. In addition, the Company relies on third-party manufacturers to adhere to the Companys supplier code of conduct. Although arrangements with such
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manufacturers may contain provisions for warranty expense reimbursement, the Company may remain responsible to the consumer for warranty service in the event of product defects. Any unanticipated product defect or warranty liability, whether pursuant to arrangements with contract manufacturers or otherwise, could have a material adverse effect on the Companys reputation, financial condition and operating results. Final assembly of the Companys products is currently performed in the Companys manufacturing facility in Ireland, and by external vendors in California, Korea, China, and the Czech Republic. Currently, the supply and manufacture of many critical components is performed by sole-sourced third-party vendors in the U.S., China, Japan, Korea, Malaysia, Philippines, Taiwan, Thailand and Singapore. Sole-sourced third-party vendors in China perform final assembly of substantially all of the Companys portable products, including MacBook Pro, MacBook, MacBook Air, iPods, iPhones, and most of the Companys iMacs. If manufacturing or logistics in these locations is disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or political issues, the Companys financial condition and operating results could be materially adversely affected. This excerpt taken from the AAPL 10-Q filed Jan 23, 2009. The Company depends on component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S. Most of the Companys components and products are manufactured in whole or in part by a few third-party manufacturers. Many of these manufacturers are located outside of the U.S., and are geographically concentrated in single locations. The Company has also outsourced much of its transportation and logistics management. While these arrangements may lower operating costs, they also reduce the Companys direct control over production and distribution. It is uncertain what effect such diminished control will have on the quality or quantity of products or services, or the Companys flexibility to respond to changing conditions. In addition, the Company relies on third-party manufacturers to adhere to the Companys supplier code of conduct. Although arrangements with such manufacturers may contain provisions for warranty expense reimbursement, the Company may remain responsible to the consumer for warranty service in the event of product defects. Any unanticipated product defect or warranty liability, whether pursuant to arrangements with contract manufacturers or otherwise, could have a material adverse effect on the Companys reputation, financial condition and operating results. Final assembly of the Companys products is currently performed in the Companys manufacturing facility in Ireland, and by external vendors in California, Korea, China and the Czech Republic. Currently, the supply and manufacture of many critical components is performed by sole-sourced third-party vendors in the U.S., China, Japan, Korea, Malaysia, Philippines, Taiwan, Thailand and Singapore. Sole-sourced third-party vendors in China perform final assembly of substantially all of the Companys portable products, including MacBook Pro, MacBook, MacBook Air, iPods, iPhones and most of the Companys iMacs. If manufacturing or logistics in these locations is disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or political issues, the Companys financial condition and operating results could be materially adversely affected.
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These excerpts taken from the AAPL 10-K filed Nov 5, 2008. The Company depends on component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S. Most of the Companys components and products are manufactured in whole or in part by a few third-party manufacturers. Many of these manufacturers are located outside of the U.S., and are geographically concentrated
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Table of Contentsin single locations. The Company has also outsourced much of its transportation and logistics management. While these arrangements may lower operating costs, they also reduce the Companys direct control over production and distribution. It is uncertain what effect such diminished control will have on the quality or quantity of products or services, or the Companys flexibility to respond to changing conditions. In addition, the Company relies on third-party manufacturers to adhere to the Companys supplier code of conduct. Although arrangements with such manufacturers may contain provisions for warranty expense reimbursement, the Company may remain responsible to the consumer for warranty service in the event of product defects. Any unanticipated product defect or warranty liability, whether pursuant to arrangements with contract manufacturers or otherwise, could have a material adverse effect on the Companys reputation, financial condition and operating results. Final assembly of the Companys products is currently performed in the Companys manufacturing facility in Ireland, and by external vendors in California, Korea, China and the Czech Republic. Currently, the supply and manufacture of many critical components is performed by sole-sourced third-party vendors in the U.S., China, Japan, Korea, Malaysia, Philippines, Taiwan, Thailand and Singapore. Sole-sourced third-party vendors in China perform final assembly of substantially all of the Companys portable products, including MacBook Pro, MacBook, MacBook Air, iPods, iPhones and most of the Companys iMacs. If manufacturing or logistics in these locations is disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or political issues, the Companys financial condition and operating results could be materially adversely affected. The Company depends on component and product manufacturing and logistical Most of the Companys components and products are manufactured in
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Final assembly of the Companys products is rights to audio and video content. The Companys licensing arrangements with these third parties are short-term and do not guarantee the continuation or renewal of these arrangements on reasonable terms, if at all. Some third-party content providers currently or in the future may offer competing products and services, and could take action to make it more difficult or impossible for the Company to license their content in the future. Other content owners, providers or distributors may seek to limit the Companys access to, or increase the total cost of, such content. If the Company is unable to continue to offer a wide variety of content at reasonable prices with acceptable usage rules, or continue to expand its geographic reach, the Companys financial condition and operating results may be materially adversely affected. Many third-party content providers require that | EXCERPTS ON THIS PAGE:
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