Estimating Apple’s potential revenue based on supply chain partner volumes

A Bloombergbusinessweek (Sept 12-16, 2011) article describes the Apple company forecast that sales will drop 12 % this quarter. But analysis of Apple’s outsourced supply base consisting og Foxconn, Samsung etc that provide 75 % of Apple’s cost of goods sold, suggests that Apple’s revenue will come it at $ 31.2 billion, in line with a 17 % growth since last quarter. Should markets triangulate a company’s sales based on its supply chain partner companies numbers to estimate potential performance ? Why would Apple underestimate sales – is to to permit the company the option to drop prices to match competitors if necessary ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

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