Xiomi and Apple Supply Chain

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Submitted by: Group 2Aman anshu(13pgp061)Arnab sen (13pgp069)Dushyant panda(13pgp078)kritika swaminathan (13pgp087)puneet manot (13pgp102)1Smartphones Accounted for 57.6 Percent of Total Sales in Fourth Quarter of 2013.The worldwide mobile phone market is anticipated to see a 3% year-on-year growth in 2014 down from 6 percent in 2013 ,9 percent in 2012 and 13 percent in 2011.Smartphone marketis forecasted to touch 23.6% growthSmartphone growth in mature markets such as North America and some Western European markets are driven by replacement sales.Smartphone growth is heavily dependent on emerging markets, notably China which forms 29 percent of global smartphone shipments.

Worldwide Smartphone Sales to End Users by Vendor in 2013 (Thousands of Units)Company2013Units2013 Market Share (%)2012Units2012 Market Share (%)Samsung299,794.931.0205,767.130.3Apple150,785.915.6130,133.219.1Huawei46,609.44.827,168.74.0LG Electronics46,431.84.825,814.13.8Lenovo43,904.54.521,698.53.2Others380,249.339.3269,526.639.6Total967,775.8100.0680,108.2100.0

Apple Supply ChainCustomer comes first, cost cutting comes secondSince Apple has retail stores, the company can make demand forecast easily.Apple is able to increase the inventory turnover by decreasing average inventoryApple's product life cycle is longer than seasonal items so that Apple is not easily affected by seasonal factorsSince demand of products can increase rapidly during this period, Apple orders products by air instead of sea.simplifying product process is a good strategy to eliminate unnecessary product lines.SOURCINGMANUFACTURING WAREHOUSINGDISTRIBUTIONRETURN