When Apple began outsourcing to contract manufacturers in China, the country was seen as a low$-$cost production region. By $2020,$ China had evolved into one of the world's largest consumer markets for Apple products and services. For iPhones destined for the Chinese market, the customs officials were able to classify the goods as exports, after which they were reclassified as imports, allowing the Chinese government to collect a value$-$added tax. As with shipments to North America, this process was completed electronically, without the iPhones leaving the customs facility in the bonded zone. iPhones bound for the domestic market were then loaded onto a truck and taken to Apple's national distribution centre outside of Shanghai, a joumey of about $18$ hours. Because a single shipment could hold approximately $35,000$ iPhones, the trucks were equipped with security equipment and sometimes accompanied by armed guards. ${?}^{{?}^{22}}$

Apple's main US distribution facility was located in Elk Grove, California, employing approximately $5,000$ people. In addition to acting as a distribution centre, the Elk Grove campus also housed operational functions, including customer support, Apple Care, and product repair and refurbishment. ${?}^{83}$ The company operated other distribution centres located around the world, including the Czech Republic, Japan, Singapore, and the United Kingdom.

The company used several direct and indirect channels to distribute the iPhone. In $2019,31$ per cent of Apple sales were made through direct channels, such as its retail and online stores and its direct sales force. The balance was via various indirect channels that included third$-$party cellular network carriers, wholesalers, retailers, and resellers. ${?}^{84}$ Apple was the fourth$-$largest online retailer in the United States in $2019,$ with an estimated $3\mathrm{.}8$ per cent of total US e$-$commerce sales, representing approximately $$60$ billion. By comparison, Walmart Inc. $($Walmart$)$ had an estimated $4\mathrm{.}8$ per cent share of the US online market. ${?}^{85}$

As iPhones became increasingly expensive, it became more difficult to predict demand for new products and to allocate volumes across the distribution network. Apple allowed customers to pre$-$order phones prior to a new iPhone launch using the Apple Store app and the Apple website. These data were used by the company to forecast demand across product configurations and geographic regions. ${?}^{86}$

Logisties for a new iPhone launch were carefully orchestrated. In the days leading up to the launch date, iPhones were sent to UPS and FedEx sorting facilities, which also handled last mile delivery. Because volumes were large, the sorting facilities would dedicate capacity for iPhones to ensure on$-$time delivery to Apple Stores and customers' homes. Meanwhile, the iPhone launch team, led by the senior vice$-$president of retail, monitored information in real time, including pre$-$orders, globally. ${?}^{87}$

Apple also operated a reverse logistics system that encompassed repairs and warranty claims, trade$-$ins, and product recycling. Customers who wanted to trade in their device and receive a credit for the purchase of a new Apple device could either go to an Apple Store or use an online process. Customers who accepted the trade$-$in estimate provided at the store received an instant credit toward a purchase or an Apple gift card that could be used anytime. The online process gave customers an estimated trade$-$in value after they provided information about the condition of the device. Customers were given the option of sending their iPhone using a prepaid trade$-$in kit and shipping label, or they could take it to an Apple Store or authorized service provider. Once Apple received the device and verified its condition, the customer received an email with an Apple gift card. Instructions were provided about how to back up the device and erase all customer data. Older iPhones with no trade$-$in value could still be sent to Apple for recycling using the same process. ${?}^x$

Customers requiring repairs or warranty claims could make an appointment at an Apple Store or an Apple authorized service provider, or they could mail their phone to an Apple repair centre. Genius Bar appointments at an Apple Store, for repairs, could be scheduled using the Apple Support App. For customers who chose to mail in their iPhone, Apple provided a prepaid shipping container and label.