urchase and supply chain

of A7 chip of iPhone 5S
Presented By :
1. Roy 2. Sabbit 3. Haifa 4.Abdulla 5. Nishit
1. Company Introduction
2. Organizational Structure
3. Situation Assessment
* Specifications
* Select Suppliers
* Contract
* Orders
* Expediting Orders
* Evaluation Suppliers
* Risk Analysis
4. Objective
5. Plans
* Logistic Policies
* Quality Policies
* Pricing Policies
* Supplier Policies
* Communication Policies
6. Recommendation
7. Control
8. Bibliography
9. Sources
10. Backups

Contain :
Apple Inc., formerly Apple Computer, Inc., is
a multinational corporation that creates consumer
electronics, personal computers, computer software,
and commercial servers, and is a digital distributor of
media content. Apple's core product lines are
the iPhone smart phone, iPad tablet
computer, iPodportable media players,
and Macintosh computer line. Founders Steve
Jobs and Steve Wozniak created Apple Computer on April
1, 1976,
[1]
and incorporated the company on January 3,
1977,
[2]
in Cupertino, California.

http://en.wikipedia.org/wiki/History_of_Apple_Inc.
Apple Company Background
ORGANIZATIONAL STRUCTURE
Founders
Steve Jobs, Steve Wozniak , Ronald Wayne

Board of directors
Bill Campbell ,Millard Drexler ,
Al Gore , Tim Cook (CEO),
Andrea Jung, Arthur D.
Levinson (Chairman),
Ronald Sugar Bob Iger

Applications
Processor
A7 CHIP
64 bit
is basically
the Brains of
a iPhone 5S
Apple A7
Produced From September 20, 2013 to Present
Designed by Apple Inc.
Common manufacturer(s) Samsung
Max. CPU clock rate 1.3 GHz to 1.4 GHz
Min. feature size 28 nm
Instruction set ARMv8-A
Microarchitecture Cyclone
Product code S5L8960X
Cores 2
L1 cache Per core: 64 KB instruction + 64 KB data
L2 cache 1 MB shared
L3 cache 4 MB
GPU PowerVR G6430 (four cluster) - unconfirmed
Application Mobile
Predecessor Apple A6 Apple A6X

The Apple A7 is a 64-bit system on a chip (SoC) designed by Apple Inc. It first
appeared in the iPhone 5S, which was introduced on September 10, 2013. Apple
states that it is up to twice as fast and has up to twice the graphicspower
compared to its predecessor, the Apple A6. While not the first 64-bit ARM CPU, it
is the first to ship in a consumer smartphone or tablet computer.

Specification:
SABIT
Select Suppliers
SABIT
Contract
ORDER
EXPEDITING ORDER
EVALUATION OF SUPPLIER
( WAITING FOR HIFAS DOCUMENT)
NOTE :
THE DOCUMENT YOU SUBMITTED
ABOUT IPHONE SUPPLY CHAIN NOT
A7 CHIP OF IPHONE. HOPE YOU
CAN RECTIFY YOUR DOCUMENTS.
HIFA
Supply market structure effects purchasing strategies
Samsung is the sole supplier and TSMC, the largest
manufacturer of microprocessor chip is approaching to be a
future supplier of apple, the dominancy of Samsung is
reducing and Apple continues to hold his power as leading
Buyer.
Samsung Factory at Austin USA
Since the introduction of the first (iPhone) in January 2007,
Samsung has occupied the key applications processor slot in
Apple's iPhone supply line. Samsung is currently the sole
supplier of A-series processors for Apple, fabricating the chips
at a plant in Austin, Texas USA. They invest millions of dollars
only to maintain A7 chip supply to Apple efficiently.

Samsung builds the A7
processor
for the Apple iPhone 5s
Risk Management
Risk Analysis Matrices
The symbiotic
business
relationship
between
Samsung and
Apple is too important for either to put at
risk. Apple appeared in USA court
against Samsung for the patent dispute.
The mystery of the Apple-Samsung
relationship remains largely unsolved
and hard to end. Samsung is the sole
supplier of Apple's processing chips
and without Samsung, Apple can't
make these products.
Situation
OBJECTIVE :
Until Apple find any sustainable and eligible supplier
for A series chip who can replace Samsung,
management have to anticipate, Identify the risk
factors evolves. Have to estimate likelihood and
impact of risk. The agreement must be more specific
in terms of Quality, Delivery, Copyright etc.
Policy Research
Since Samsung is only the reliable supplier in the market, the
supply risk is high and the commercial impact is also high. So
Apple have to go for partnership agreement with samsung
regarding supply of A7 chip.
Sourcing Strategy
Recommendations
* Samsung is the most strong and reliable regarding quality, price,
development, understanding apples requirements, because they working
together for long time. Due to a combat in smart phone field, apple have to
be more specific in their renewal of contract agreement and anticipate future
business strategies.
* Apple have to develop a website where developers can submit proposal for
new inventions and can get the opportunity to interact directly with Apple
purchase Department.
* Apple may move beyond designing silicon and actually build its own
mobile chips, rather than relying entirely on third-party suppliers like
Samsung or TSMC.
* Apple have to find new suppliers in USA to reduce the risk impact from
Samsung
*Long-Term Implications If there is a long-term threat to Apple from
Samsung, it may be in the possibility that Samsung will successfully capture
low-end customers and eventually upgrade them to higher-value phones.
* Apple's agreements with Samsung will ensure that Samsung has no choice
but to comply and supply.
*Apple threatened Samsung with litigation two years ago, it's had plenty of
time to identify alternatives

Bibliography
Back Up
Samsung's 'Apple' chip rides iPhone market gains
http://www.businessweek.com/articles/2012-09-19/the-iphone-5s-a6-chip-could-be-
apples-sweetest-revenge-against-samsung
http://www.cnet.com/news/still-together-new-analysis-finds-samsung-a7-inside-
iphone-5s/
https://www.google.fr/?gfe_rd=cr&ei=rWA6U9SjMM2pjwfPwYCgCA#q=supplier+for+a7+c
hip+to+iphone+5s
http://appleinsider.com/articles/13/11/11/global-foundries-to-build-a-series-chips-
for-apple-in-new-york---report
http://appleinsider.com/topic/A7
http://news.cnet.com/8301-13924_3-10356877-64.html
http://news.cnet.com/8301-13579_3-9926461-37.html
Apple acquires low-power chip designer PA Semi

Steven Paul "Steve" Jobs

was an American entrepreneur,marketer,and inventor, who was

the co-founder, chairman, and CEO of Apple Inc
http://www.reuters.com/article/2012/08/27/us-samsung-apple-supply-
idUSBRE87Q06N20120827
http://appleinsider.com/articles/08/04/23/apple_buys_chip_designer_pa_semi_for_278_
million
http://macdailynews.com/2008/04/24/us_department_of_defense_may_take_issue_with_a
pples_pa_semi_acquisition/

GlobalFoundries to build A-series chips for Apple in New York
report
http://appleinsider.com/articles/13/11/11/global-foundries-to-
build-a-series-chips-for-apple-in-new-york---report

RISK PRIORITY MANAGEMENT :
http://www.mindtools.com/pages/article/newPPM_78.htm
https://www.tbs-sct.gc.ca/pol/doc-
eng.aspx?id=20010&section=text

Apple's A8 Chip Production for iPhone 6 Underway at TSMC

http://www.macrumors.com/2014/03/05/a8-chip-underway-
tsmc/
http://www.macrumors.com/2014/02/17/samsung-drops-a8-
low-yield/
http://www.theregister.co.uk/2014/03/06/apple_a8_made_by_tsm
c/

TSMC: No decision on new U.S. factory
http://www.oregonlive.com/silicon-
forest/index.ssf/2013/04/tsmc_no_decision_on_new_
us_fac.html


Apple was founded by Steve Jobs, Steve Wozniak,
and Ronald Wayne on April 1, 1976 to develop and
sell personal computers. It was incorporated as Apple
Computer, Inc. on January 3, 1977, and was renamed as
Apple Inc. on January 9, 2007 to reflect its shifted focus
towards consumer electronics.

Founders
Steve Jobs, Steve Wozniak , Ronald Wayne

Board of directors
Bill Campbell ,Millard Drexler ,
Al Gore , Tim Cook (CEO),
Andrea Jung, Arthur D.
Levinson (Chairman),
Ronald Sugar Bob Iger

Executives
Tim Cook, Eddy Cue,
Craig Federighi, Jonathan Ive,
Peter Oppenheimer, Dan Rico,
Phil Schiller, Bruce Sewell,
Jeff Williams

ORGANIZATIONAL STRUCTURE

*Experts and analysts said the
symbiotic business relationship
between Samsung and Apple is too
important for either to put at risk.
*Samsung had sought to resolve
the patent dispute with Apple - which
Apple first brought up shortly after
Samsung launched its first Galaxy model in
2010 - through negotiation rather than in
the courtroom.

http://www.reuters.com/article/2012/08/27/us-samsung-
apple-supply-idUSBRE87Q06N20120827


Risk Analysis

Risk Analysis
* Apple must bring more specification in purchase
contract with Samsung to dominate since Apple
give billions dollars business to Samsung.

* Apple have to be more strict regarding copyright
and patent infringement case with Samsung.

* Samsung is a key supplier to Apple for the
processors used in the iPhone and iPad . In that
case if Apple really able to give more and more
business to Samsung despite of cold war in mobile
manufacturing between them, Samsung bound to
invest more in development of Apple product
production unit.

* Apple has to spread its supply chain to reduce its
reliance on Samsung.

* Apple have to offer a wider variety of phones, with
a wider array of features and price points.


*Apple has to maintain the status as the technology and innovation leader in the market.
Plans
1. Long-Term Implications
If there is a long-term threat to Apple from Samsung, it may be
in the possibility that Samsung will successfully capture low-end
customers and eventually upgrade them to higher-value phones.
2. Apple's agreements with Samsung will ensure that Samsung
has no choice but to comply and supply.
3. Apple threatened Samsung with litigation two years ago, it's
had plenty of time to identify alternatives
Recomendations