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  • Outsourcing as a Response to Diseconomies of Scale

Apple's Outsourcing Strategy

Apple Inc. provides a clear example of using an outsourcing strategy to manage its size and complexity. Rather than manufacturing all the components for its products like the iPhone and iPad in-house, Apple purchases parts such as touch screens and chipsets from external suppliers like Toshiba and Samsung. This strategy not only limits Apple's own size, thereby avoiding certain diseconomies of scale, but it also contributes to the growth of its supplier companies.

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Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ

Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ

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