HomeResearch & Knowledgeback to HomeOperationsback to Research & KnowledgeApple’s supply chain transformationback to Operations

Case Study

Apple’s supply chain transformation

By Carlos Cordon and Nick Georgiev

14 pages

May 2023

Order this case study

Reference: IMD-7-2451

In 2022, Apple lost US$1.5 billion in Black Friday sales due to iPhone supply constraints. One in three retail stores across the US and Europe experienced stockouts of the new iPhone 14 Pro. China sales were down more than 30% year on year. Apple’s stock had dropped 29% in 2022. China’s zero-Covid policy resulted in massive lockdowns that made factory working conditions unbearable. In the second half of 2022, many Chinese workers quit their jobs at Apple’s Foxconn facilities. The Russia-Ukraine war that started in February 2022 and the ensuing Western sanctions spurred an unprecedented global energy crisis and double-digit inflation. Now that supply chain disruptions, component shortages and rising geopolitical tensions had become a reality, Apple had to decide on a transformation, knowing that the transition presented difficult trade-offs and would take years to complete: (1) Which elements to change in the company’s global value chain? How to approach change without hurting manufacturing continuity, product quality, revenue and profitability? (2) Should Apple further drive its vertical integration in the design of chips, semiconductors, screens and assembly? Or should it adopt the Android phone manufacturers’ model and develop a broader base of suppliers?

Learning Objective

Define Apple’s supply chain competitive advantages and dependencies
Analyze the factors driving the need for transformation and their impact
Assess the options available in Apple’s global value chain adaptation to a deglobalizing world
Evaluate the strategy and tactics for Apple’s supply chain transformation

Keywords

Operations, Strategy, Supply Chain, Value Chain, Transformation, Logistics, Offshoring, Friendshoring, Supply Chain Management

Settings

World/global
Apple, Consumer Goods, Consumer Electronics
1998-2022

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Best-selling Case Study

Keep reading

Article

Strategy Meets Execution - Supply Chain

10 years of exclusive surveys reveal top supply chain strategy challenges—and how tools like AI, ML, and digital twins are reshaping the path forward.

Strategy Supply Chain

By Ralf W. Seifert and Katrin Siebenbürger Hacki

in I by IMD

Article

4 Key Guidelines for Success - Demystifying AI Use Cases

Uncover AI use cases and opportunities with 4 clear imperatives that align data with business value. Avoid pitfalls and ask the right questions.

Artificial Intelligence Strategy

By Didier Bonnet and Achim Plueckebaum

in I by IMD

Article

Tariff wars: How business leaders can survive and thrive

Stay ahead in a shifting global economy. Learn how to build resilient supply chains, manage currency risks, and adapt strategies for long-term business success.

Economics Geopolitics Strategy Supply Chain

By Arturo Bris

in I by IMD

Case Study

Your company (and your life) in the hands of an AI agent?

Artificial Intelligence Digital Strategy

By José Parra Moyano and Alix Rey

Article

People, Culture, and Strategy - The Boards Role

#post_excerptHannele Jakosuo-Jansson of Neste and Finnair shared key insights on board roles in CEO transitions and culture shifts with IMD’s High Performance Boards program.

Board Business Transformation Strategy

By Didier Cossin and Yukie Saito

in I by IMD

Case Study

AstraPay in Indonesia: Playing the digital payments platform vs ecosystem game

Digital General Management Strategy

By Marleen Dieleman, Aarthi Thyagarajan, Pranesh Mahadeo, Maxence Nobels and Guillaume Clement

Article

Three ways to deal with your boss - Poor Leadership

Three Ways to Deal with Your Boss when they act against civility, empathy, and ethics. Discover strategies to handle difficult workplace dynamics effectively.

Leadership Negotiation Strategy

By Merete Wedell-Wedellsborg

in I by IMD

Article

6 Tips for Leaders - Reputation Building

Six ways leaders can shape corporate reputation building strategies within their organizations, drawing on key insights from a Bloomberg Media study.

Branding Business Ethics Leadership Strategy

By Anne Kawalereski, Michelle Lynn and Elisabeth Oak

in I by IMD

Article

Leadership Thinking - Turbulent Business

To navigate a turbulent business environment, CEOs must understand their landscape and align leadership thinking priorities, advises IMD’s Michael Watkins.

Leadership Resilience Strategy

By Michael D. Watkins

in I by IMD

Tariff wars: How business leaders can survive and thrive

By Arturo Bris
in I by IMD

Summary

Stay ahead in a shifting global economy. Learn how to build resilient supply chains, manage currency risks, and adapt strategies for long-term business success.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Economics

Geopolitics

Strategy

Supply Chain

Browse all topics

Your company (and your life) in the hands of an AI agent?

By José Parra Moyano and Alix Rey
Case reference: IMD-2666 ©2025

Summary

The case study introduces an original way of exploring the many questions and concerns around AI adoption in business. Based on a true story, it discusses the dilemma of AI implementation through Joe, the CIO of ParcelFlow. Joe is getting ready to present his AI strategy to the company's executive committee. Joe is also diabetic and on the morning of his presentation, he receives an AI-powered insulin pump. This is a life-changing event that raises both questions and fears that range from device functionality and safety to data privacy. Joe realizes that at his morning doctor's appointment, he has just gone through the same process that the executive committee is about to experience. Will Joe succeed in convincing the executive committee to transition towards the use of AI agents? To ultimately transform ParcelFlow's operations, Joe knows that answering the committee's concerns is vital. Joe's thoughts span the various stakeholders he needs to convince: Diane - the chief financial officer; Elena - the head of customer experience; Michael - the head of operations; Albert - the chief human resources officer; Robert - the legal counsel; and Lucy - the chief executive officer. Each stakeholder will have their own reservations and worries about the financial implications, customer experience, operational efficiency, workforce impact, legal compliance, and overall benefits of AI. Building trust is key for engaging people in this technological revolution. This can be achieved smoothly and rapidly by understanding, identifying and analyzing what AI is about and what it will do for us or our business. And most importantly, it must be accomplished with an excellent communications strategy.

Reference IMD-2666

Industry Healthcare, Medical Device;Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Digital

Strategy

Browse all topics

People, Culture, and Strategy - The Boards Role

By Didier Cossin and Yukie Saito
in I by IMD

Summary

#post_excerptHannele Jakosuo-Jansson of Neste and Finnair shared key insights on board roles in CEO transitions and culture shifts with IMD’s High Performance Boards program.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Business Transformation

Strategy

Browse all topics

AstraPay in Indonesia: Playing the digital payments platform vs ecosystem game

By Marleen Dieleman Aarthi Thyagarajan Pranesh Mahadeo Maxence Nobels and Guillaume Clement
Case reference: IMD-2650 ©2025

Summary

This case study explores AstraPay’s journey to become a significant player, despite its latecomer status, in Indonesia’s burgeoning digital payments landscape. Launched in 2018, AstraPay had grown to serve over one million customers, but it faced intense competition from tech-first digital super-apps like GoTo and OVO. Led by Rina Apriana, who became CEO in 2023, AstraPay had to leverage its unique position within Astra International, a vast conglomerate with deep roots in Indonesia’s economy, to differentiate itself. The case first explores the conceptual differences between a platform and an ecosystem. It then considers how AstraPay can leverage Astra International’s unique characteristics to unlock synergies and evolve into an ecosystem. The question is underpinned by considerations on how AstraPay can best leverage its late mover status to compete with established digital first competitors. Finally, the students are encouraged to explore a range of alternative options available to Astra for building its ecosystem by highlighting the pros and cons of each approach against which to assess the final path taken by AstraPay.

Reference IMD-2650

Organization AstraPay

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Digital

General Management

Strategy

Browse all topics

Three ways to deal with your boss - Poor Leadership

By Merete Wedell-Wedellsborg
in I by IMD

Summary

Three Ways to Deal with Your Boss when they act against civility, empathy, and ethics. Discover strategies to handle difficult workplace dynamics effectively.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Negotiation

Strategy

Browse all topics

6 Tips for Leaders - Reputation Building

By Anne Kawalereski Michelle Lynn and Elisabeth Oak
in I by IMD

Summary

Six ways leaders can shape corporate reputation building strategies within their organizations, drawing on key insights from a Bloomberg Media study.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Branding

Business Ethics

Leadership

Strategy

Browse all topics

Leadership Thinking - Turbulent Business

By Michael D. Watkins
in I by IMD

Summary

To navigate a turbulent business environment, CEOs must understand their landscape and align leadership thinking priorities, advises IMD’s Michael Watkins.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Resilience

Strategy

Browse all topics