Were Nietzsche alive today and covering the tech industry, he might say something along the lines of, And what you outsource to the abyss, the abyss outsources also onto you. Over at Asymco s blog, James Allworth has written a very interesting piece arguing that Apple (AAPL) really has itself to blame for the rise of smartphone rival Samsung (005930). In fact, Allworth contends that Apple s reliance on Samsung as a component supplier may have taught the South Korean manufacturer everything it needed to know about effective smartphone design and supply chain management.
Allworth s argument can be summarized thusly: Apple spent a good part of the last decade thumping its competition because it had gone through a long gestation period where it perfected both its products and its business practices in ways that couldn t have been easily copied by competitors unless they were privy to Apple s trade secrets. To replicate Apple s success in this area, it would likely take competitors years of going through similar gestation periods just to catch up.
But Allworth then throws something else into the mix: What if the biggest threat to Apple didn t come from well-known electronics manufacturers such as Nokia (NOK) and RIM (RIMM), but from the companies it had long relied upon to supply it with components?
When Apple went through this transformative process, where the design whittled down the broad range of offerings to just a few, and they generated the scale on the business side that accompanied that they weren t actually the only one to go through that process, Allworth contends. Apple s partners their suppliers went through it with them. And they ve got very big, and very good at what they do. Samsung, obviously, is among those partners.
The irony, of course, is that Apple s mastery of its supply chain and its approach to outsourcing have been two of the reasons why the company has turned into one of the most profitable the world has ever seen. And if Allworth s theory is correct, then it s no wonder that Apple is in such a rush to ditch Samsung as a component supplier, because otherwise any further refinement of its design and management practices would only stand to benefit the company that has become its fiercest rival.
Get more from BGR.com: Follow us on Twitter, Facebook
Blog List
-
Kaley Cuoco Shows Off Fit Physique In Skin-Revealing Yoga Outfit - By Suzy Byrne Kaley Cuoco leaving yoga class in L.A. on Monday. (X17online.com)Kaley Cuoco gave new meaning to hot yoga on Monday when she emerged from cla...10 years ago
Pageviews
Popular Posts
-
Even if you're not living your best life you can make it look like you are on Facebook, and just glimpsing this idealized version of you...
-
COLUMBIA, S.C. (AP) South Carolina's governor appears to have closed the door on appointing Stephen Colbert to the U.S. Senate, al...
-
BlackBerry 10 One of the main concerns surrounding Research in Motion s ( RIMM ) upcoming BlackBerry 10 operating system ...
-
You could call it The First Wives Club Comes to Washington. CNN reported Tuesday that South Carolina Gov. Nikki Haley (R) has finalize...
-
REDLANDS, Calif. (AP) After spending nearly a half-century as husband and wife, Bob and Norma Clark are finally married. The couple from Red...
-
The latest company to launch into the asteroid-mining business isn't worried about competition from its biggest rival, saying that the r...
-
There is no shortage of Christmas light display stories each holiday season. But how often do you see a massive display of holiday exuberanc...
-
LONDON (Reuters) - British Oscar-winning actress Kate Winslet has married for the third time, her publicist confirmed on Thursday. The 37-...
-
BlackBerry 10 After insisting that BlackBerry ( BBRY ) shares would rebound throughout 2011 and 2012 as the stock plummeted, Macquarie Capi...
-
CHICHEN ITZA, Mexico (Reuters) - As pockets of anxiety crop up ahead of the day billed as the Maya apocalypse, a motley crew of New Age th...