Apple's Supply Chain Challenges What does it feel like to be "Apple Inc."? One journalist indicated that the life of Apple Inc. is fairly easy by utilizing its negotiation power. Believe me, Apple Supply Chain has very the high risks. There are many challenges to overcome, for example: Global economy could affect the Company. Some re-sellers may also distribute products from the competing manufacturers. Inventories can become obsolete or exceed the anticipated demand. Some components are currently obtained from the single or limited sources. Some custom components are not common to the rest of the industries. Ability to obtain components in sufficient quantities is important. Supply chain disruption such as the natural and man-made disasters can be serious. Company depends on logistical services provided by outsourcing partners. Company also relies on its partners to adhere to supplier code of conduct. The above information is also from annual report. As you can see, most of the risks are on the supply side.