«Apple»: The secret of success

«Apple»: The secret of success

“Lieutenant bought some shares of a fruit company, and now we needn’t think about money anymore”
“Forrest Gump”

Every epoch has its distinguishing feature – its face. In the Middle Ages it is gloomy, illuminated by bonfires of “Holy Inquisition.” Renaissance has got a gentle face of Raphael Santi’s paintings. The twentieth century is a century of contrasts and progress, “stormy” twenties, “depressed” thirties, “military” forties, and so on.

Our decade also has a distinctive feature – and it is an apple. During an era of rapid development of electronic gadgets, championship crown belongs to «Apple». The company managed to raise generation of people who are fanatically seeking to buy expensive “apple” novelty every six months.

On the 26-th of January this year, «Apple» summed up the first quarter of 2016 fiscal year, and it turned out that the company’s revenue for the quarter was 75.9 billion US dollars, net profit – 18.4 billion. This is the greatest result during the whole history of the company.

What is the secret of this “transcendental” income?

The answer is simple – geographical outsourcing or relocation of the company. In 2004 «Apple» is on the verge of collapse, closes the last manufacture in the United States, successfully shifting all production to East Asia, and this time reasonably called – the rebirth of the company.

Today almost all of «Apple» factories are in China. Minimum taxation and special aspects of labor market make China an ideal area for the opening of foreign offices. At one of the «Apple’s» plants, operate 230 thousand people getting $ 17 per day (very decent income for China) that allows to optimize costs only on wages.
At the moment, the head of «Apple», Tim Cook, is planning to develop production with the help of foreign offices as an effective tool for reducing costs.

«Lab Consulting» Experts advise to adopt the successful relocation experience of foreign colleagues to optimize costs and increase revenue.

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