Short answer
When designing products, consider how the selection of components and the structure of the supply chain can influence the economic benefits realized in specific regions.
- Field
- Commercial Production
- Source
- International Journal of Automation and Smart Technology (2012)
- Method
- Comparative case study analysis
- Evidence
- Moderate effect
Differences in supply chain structure and component specialization significantly impact the economic value generated within a specific region. This commercial production research insight is drawn from a 2012 study published in International Journal of Automation and Smart Technology. Using Comparative case study analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing products, consider how the selection of components and the structure of the supply chain can influence the economic benefits realized in specific regions.
Apple's smartphone supply chain generates $37.3 USD value per unit in Taiwan, while HTC's generates $58.7 USD.
Differences in supply chain structure and component specialization significantly impact the economic value generated within a specific region.
International Journal of Automation and Smart Technology · 2012
Key Findings
- 01Apple's component supply chain generated $37.3 USD of value in Taiwan per smartphone produced.
- 02HTC's component supply chain generated $58.7 USD of value in Taiwan per smartphone produced.
- 03Industrial specialization influences the slicing up of the global value chain based on comparative advantages.
Application
Design takeaway
When designing products, consider how the selection of components and the structure of the supply chain can influence the economic benefits realized in specific regions.
How to apply
When developing a new product, map out its potential supply chain and estimate the value added at each stage for different regions. Identify opportunities to foster local manufacturing of high-value components.
Project actions
- 01When analyzing a product's supply chain, consider where the most value is created.
- 02Think about how design choices affect where jobs and money are generated.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides specific quantitative data on value generation.
- +Compares two major players in the industry, offering a basis for comparison.
Limitations
It can be difficult to get precise data on value added for every component and stage of a supply chain.
Reliability & validity
The study's validity relies on the accuracy of the economic data collected for the supply chains. Reliability is moderate due to the complexity of global supply chains and potential variations in data reporting.
Think critically
How might a company like Apple, with its focus on design and user experience, intentionally structure its supply chain to maximize regional economic contribution, even if it means slightly higher per-unit costs?
Design Principles
"Optimize supply chain composition to maximize regional value creation."
Understanding how different companies leverage their supply chains can reveal opportunities for regional economic development. Designers and businesses can analyze these models to optimize their own value creation strategies and identify areas for focused industrial investment.
What This Means for Your Design
Different companies make different amounts of money for their home country from making the same type of product (like smartphones) because they use different parts and factories.
How to use in your project
- 1.Use this research to justify decisions about component sourcing and manufacturing locations in your design project, linking them to economic impact.
Add to My Project
Quick Cite
Paragraph starter
This study highlights that the economic contribution of a product's supply chain can vary significantly based on industrial specialization. For instance, Apple's smartphone supply chain generated $37.3 USD of value in Taiwan per unit, whereas HTC's generated $58.7 USD. This suggests that strategic choices in component sourcing and manufacturing can lead to greater regional economic benefits, a factor to consider in product development.
Source
International Journal of Automation and Smart Technology
The Industrial Specialization and Economic Contribution of the Smartphone Supply Chain: The Case of Apple and HTC
journal · 2012
View sourceQuestions About This Research
- What does the research say about apple's smartphone supply chain generates $37.3 usd value per unit in taiwan, while htc's generates $58.7 usd?
- When designing products, consider how the selection of components and the structure of the supply chain can influence the economic benefits realized in specific regions. Evidence: International Journal of Automation and Smart Technology (2012).
- Why does "Apple's smartphone supply chain generates $37.3 USD value per unit in Taiwan, while HTC's generates $58.7 USD." matter for design?
- Understanding how different companies leverage their supply chains can reveal opportunities for regional economic development. Designers and businesses can analyze these models to optimize their own value creation strategies and identify areas for focused industrial investment.
- How can designers apply this research?
- When designing products, consider how the selection of components and the structure of the supply chain can influence the economic benefits realized in specific regions.
- What were the main findings?
- Apple's component supply chain generated $37.3 USD of value in Taiwan per smartphone produced.. HTC's component supply chain generated $58.7 USD of value in Taiwan per smartphone produced.. Industrial specialization influences the slicing up of the global value chain based on comparative advantages.
- What research method was used?
- Comparative case study analysis.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2012 journal from International Journal of Automation and Smart Technology.
- What should I do differently in my next project?
- When developing a new product, map out its potential supply chain and estimate the value added at each stage for different regions. Identify opportunities to foster local manufacturing of high-value components.
- What are the limitations?
- The study is specific to the smartphone industry and the analyzed companies (Apple and HTC) in 2012, and may not be generalizable to other industries or time periods. The analysis focuses on value added and jobs, not necessarily profit margins or overall company success.